MER Telemanagement Solutions (NASDAQ:MTSL) and Avaya (NYSE:AVYA) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Valuation and Earnings

This table compares MER Telemanagement Solutions and Avaya’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MER Telemanagement Solutions $8.63 million 0.65 -$1.76 million N/A N/A
Avaya $2.85 billion 0.63 $3.26 billion N/A N/A

Avaya has higher revenue and earnings than MER Telemanagement Solutions.

Insider & Institutional Ownership

2.0% of MER Telemanagement Solutions shares are owned by institutional investors. Comparatively, 99.7% of Avaya shares are owned by institutional investors. 59.1% of MER Telemanagement Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MER Telemanagement Solutions and Avaya, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MER Telemanagement Solutions 0 0 0 0 N/A
Avaya 0 3 2 0 2.40

Avaya has a consensus price target of $23.30, indicating a potential upside of 44.00%. Given Avaya’s higher possible upside, analysts clearly believe Avaya is more favorable than MER Telemanagement Solutions.

Profitability

This table compares MER Telemanagement Solutions and Avaya’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MER Telemanagement Solutions N/A N/A N/A
Avaya 114.49% 185.96% 44.72%

Summary

Avaya beats MER Telemanagement Solutions on 8 of the 10 factors compared between the two stocks.

MER Telemanagement Solutions Company Profile

MER Telemanagement Solutions Ltd. provides solutions for telecommunications expense management (TEM), enterprise mobility management, and online and mobile video advertising worldwide. The company operates in three segments: Enterprise, Service Providers, and Video Advertising. It offers TEM suite software platform that helps organizations to reduce operational expenses, enhance productivity, and optimize networks and services associated with communications networks and information technology (IT). The company also provides TEM services, such as Map-to-Wins, a strategic consulting approach for TEM solution; and consulting services, including invoice and inventory audit and recovery, contract negotiations and strategic sourcing, discovery and road mapping, process diagnosis and solution design, and wireless optimization services, as well as creation and implementation of IT governance, risk, and compliance policies. In addition, the company offers converged billing solutions that include applications for charging and invoicing customers, interconnect billing, and partner revenue management services for wireless providers, voice over Internet protocol, Internet protocol television, mobile virtual network operators, and content service providers. Further, it provides cloud and managed services; and digital video advertising solutions for large and small brand advertisers, advertising agencies, and other businesses. The company sells its solutions through original equipment manufacturers, distribution channels, and direct sales force. MER Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Ra'anana, Israel.

Avaya Company Profile

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices. It also provides an open development platform for customers and third parties to create custom applications and automated workflows for their needs; and contact center solutions that enable customers to build a customized portfolio of applications driving customer engagement and customer value. This segments communications solutions include voice, email, chat, social media, video, and performance management. The Services segment provides global support services, enterprise cloud and managed services, and professional services. The company also delivers cloud business communications services and solutions to connect with customers. Avaya Holdings Corp. sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company is based in Santa Clara, California.

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