Ichor (NASDAQ:ICHR) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Profitability

This table compares Ichor and Viavi Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ichor 7.03% 30.78% 12.90%
Viavi Solutions -3.76% 15.82% 5.94%

Risk & Volatility

Ichor has a beta of 2.85, indicating that its stock price is 185% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ichor and Viavi Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ichor $823.61 million 0.65 $57.88 million $2.79 8.62
Viavi Solutions $880.40 million 3.28 -$46.00 million $0.34 37.26

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

Analyst Recommendations

This is a summary of current ratings and target prices for Ichor and Viavi Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ichor 0 1 4 0 2.80
Viavi Solutions 1 0 8 0 2.78

Ichor presently has a consensus target price of $29.20, suggesting a potential upside of 21.46%. Viavi Solutions has a consensus target price of $12.87, suggesting a potential upside of 1.54%. Given Ichor’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ichor is more favorable than Viavi Solutions.

Insider & Institutional Ownership

99.8% of Ichor shares are owned by institutional investors. Comparatively, 92.9% of Viavi Solutions shares are owned by institutional investors. 2.2% of Ichor shares are owned by company insiders. Comparatively, 0.5% of Viavi Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Ichor beats Viavi Solutions on 10 of the 14 factors compared between the two stocks.

Ichor Company Profile

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. It primarily offers gas and chemical delivery subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising electroplating and cleaning. It also manufactures precision machined components, weldments, and proprietary products for use in fluid delivery systems. The company operates in the United States, the United Kingdom, Singapore, Malaysia, and Korea. Ichor Holdings, Ltd. was founded in 1999 and is headquartered in Fremont, California.

Viavi Solutions Company Profile

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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