TOKYO ELECTRON/ADR (OTCMKTS:TOELY) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares TOKYO ELECTRON/ADR and Viavi Solutions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TOKYO ELECTRON/ADR $10.21 billion N/A $1.92 billion $2.88 13.88
Viavi Solutions $880.40 million 3.33 -$46.00 million $0.34 37.81

TOKYO ELECTRON/ADR has higher revenue and earnings than Viavi Solutions. TOKYO ELECTRON/ADR is trading at a lower price-to-earnings ratio than Viavi Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TOKYO ELECTRON/ADR and Viavi Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TOKYO ELECTRON/ADR 19.56% 33.09% 21.34%
Viavi Solutions -3.76% 15.82% 5.94%

Volatility & Risk

TOKYO ELECTRON/ADR has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for TOKYO ELECTRON/ADR and Viavi Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TOKYO ELECTRON/ADR 0 1 0 0 2.00
Viavi Solutions 0 1 8 0 2.89

Viavi Solutions has a consensus target price of $12.99, indicating a potential upside of 1.05%. Given Viavi Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Viavi Solutions is more favorable than TOKYO ELECTRON/ADR.

Insider & Institutional Ownership

92.9% of Viavi Solutions shares are held by institutional investors. 0.5% of Viavi Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

TOKYO ELECTRON/ADR pays an annual dividend of $0.85 per share and has a dividend yield of 2.1%. Viavi Solutions does not pay a dividend. TOKYO ELECTRON/ADR pays out 29.5% of its earnings in the form of a dividend.

Summary

TOKYO ELECTRON/ADR beats Viavi Solutions on 8 of the 15 factors compared between the two stocks.

About TOKYO ELECTRON/ADR

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, distributes, and sells semiconductor and flat panel display (FPD) production equipment in Japan, North America, Europe, South Korea, Taiwan, China, and internationally. The company's Semiconductor Production Equipment segment offers coaters/developers, plasma etch systems, and single wafer deposition systems and cleaning systems used in wafer processing; wafer probers used in wafer testing process; and electrochemical deposition systems and wafer bonders/debonders used in packaging processes. Its Flat Panel Display Production Equipment segment provides coaters/developers and plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED panels. The company also offers logistic, facility maintenance, and insurance services. Tokyo Electron Limited was founded in 1963 and is headquartered in Tokyo, Japan.

About Viavi Solutions

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military, and avionics customers worldwide. The company operates through Network Enablement, Service Enablement, and Optical Security and Performance Products segments. The Network Enablement segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The Service Enablement segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The Optical Security and Performance Products segment offers optical products for anti-counterfeiting, government, industrial, automotive, and consumer electronic markets, including 3D sensing applications. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1979 and is headquartered in San Jose, California.

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