TNS (NYSE: TNS) and Viavi Solutions (NASDAQ:VIAV) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
TNS N/A N/A N/A
Viavi Solutions 10.57% 8.99% 3.44%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TNS N/A N/A N/A $0.59 N/A
Viavi Solutions $811.40 million 2.42 $166.90 million $0.36 24.03

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

Institutional and Insider Ownership

92.5% of Viavi Solutions shares are owned by institutional investors. 0.6% of Viavi Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for TNS and Viavi Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TNS 0 0 0 0 N/A
Viavi Solutions 0 2 5 0 2.71

Viavi Solutions has a consensus price target of $12.50, indicating a potential upside of 44.51%.

Summary

Viavi Solutions beats TNS on 7 of the 8 factors compared between the two stocks.

About TNS

TNS, Inc., (TNS) is an international data communications company, which provides networking, managed connectivity, data communications and value added services to telecommunication companies, retailers, banks, payment processors and financial institutions. The Company operates in three divisions: Telecommunication Services Division (TSD), Payment Services Division (PSD), and Financial Services Division (FSD). The TSD principally serves telecommunication customers in North America, but has started generating revenue outside of North America from certain products. The PSD is focused on the payments industry in North America, Europe and Asia Pacific. The FSD serves customers in the financial services industry in North America, Europe and Asia Pacific. In February 2013, the Company was acquired by investor group led by Siris Capital Group, LLC (Siris).

About Viavi Solutions

Viavi Solutions Inc. (Viavi) is a provider of network test, monitoring and assurance solutions to communications service providers, enterprises and their ecosystems. The Company also offers thin film optical coatings, providing light management solutions to anti-counterfeiting, consumer and industrial, government and healthcare and other markets. The Company’s segments include Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). The NE segment provides testing solutions that access the network to perform build-out and maintenance tasks. The SE segment offers solutions, which are embedded systems that yield network, service and application performance data. The OSP segment provides optical security solutions. The OSP segment’s security offerings for the currency market include Optically Variable Pigment (OVP), Optically Variable Magnetic Pigment (OVMP) and banknote thread substrates.

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