NETGEAR (NASDAQ:NTGR) versus Ezenia (OTCMKTS:EZEN) Critical Analysis

NETGEAR (NASDAQ:NTGR) and Ezenia (OTCMKTS:EZEN) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Risk and Volatility

NETGEAR has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Ezenia has a beta of -589384.12, meaning that its share price is 58,938,512% less volatile than the S&P 500.

Insider & Institutional Ownership

83.0% of NETGEAR shares are held by institutional investors. 2.3% of NETGEAR shares are held by insiders. Comparatively, 28.5% of Ezenia shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares NETGEAR and Ezenia”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETGEAR	$673.76 million	1.42	$12.36 million	$2.16	15.32
Ezenia	N/A	N/A	N/A	N/A	N/A

NETGEAR has higher revenue and earnings than Ezenia.

Analyst Recommendations

This is a breakdown of current ratings for NETGEAR and Ezenia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETGEAR	0	1	2	1	3.00
Ezenia	0	0	0	0	0.00

NETGEAR presently has a consensus target price of $33.00, indicating a potential downside of 0.27%. Given NETGEAR’s stronger consensus rating and higher probable upside, equities analysts clearly believe NETGEAR is more favorable than Ezenia.

Profitability

This table compares NETGEAR and Ezenia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETGEAR	9.13%	-3.24%	-2.09%
Ezenia	N/A	N/A	N/A

Summary

NETGEAR beats Ezenia on 8 of the 11 factors compared between the two stocks.

About NETGEAR

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.

About Ezenia

Ezenia!, Inc. provides real-time communication, conferencing, and collaboration solutions worldwide. It offers InfoWorkSpace, a real-time collaboration solution that provides organizations with the tools to communicate through various options, such as conferences and shared applications, which help in streamlining day-to-day operations. Its products have applications in healthcare, education, government, defense, and commercial environments. The company was formerly known as VideoServer, Inc. Ezenia!, Inc. was founded in 1991 and is headquartered in Weare, New Hampshire.