Sierra Wireless (NASDAQ: SWIR) and Envivio (NASDAQ:ENVI) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

25.1% of Sierra Wireless shares are owned by institutional investors. 2.0% of Sierra Wireless shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sierra Wireless and Envivio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sierra Wireless 3.13% 9.16% 5.84%
Envivio -5.31% -7.98% -4.76%

Earnings & Valuation

This table compares Sierra Wireless and Envivio’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sierra Wireless $651.88 million 1.06 $42.36 million $0.62 34.76
Envivio N/A N/A N/A N/A N/A

Sierra Wireless has higher revenue and earnings than Envivio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sierra Wireless and Envivio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sierra Wireless 1 7 2 0 2.10
Envivio 0 0 0 0 N/A

Sierra Wireless presently has a consensus target price of $23.89, suggesting a potential upside of 10.85%. Given Sierra Wireless’ higher probable upside, equities research analysts clearly believe Sierra Wireless is more favorable than Envivio.

Summary

Sierra Wireless beats Envivio on 8 of the 8 factors compared between the two stocks.

About Sierra Wireless

Sierra Wireless, Inc. is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments. The Company offers a portfolio of second generation, third generation, and fourth generation cellular embedded wireless modules and gateways, integrated with its secure cloud and connectivity services. The Company offers its products to original equipment manufacturers (OEMs) and enterprises.

About Envivio

Envivio, Inc. is a provider of software-based Internet protocol (IP) video processing and distribution solutions that enable the delivery of video to consumers. The Company’s solutions enable service providers and content providers to offer video across a range of video formats, networks, consumer devices and operating systems. The Company enables service providers and content providers to deliver linear broadcast and on-demand video services to their customers via various screens, such as televisions, tablets, smartphones, laptops, personal computers (PCs) and gaming devices. The Company’s product line includes Muse, Halo, Envivio appliances and Guru. Its software-based solution delivers a converged multi-screen service for traditional Pay-television, and across mobile, broadband and managed networks. The Company’s solution enables the transport of video through different networks, such as broadband and mobile networks, or traditional cable and satellite broadcast networks.

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