Analyzing Calix (CALX) & InterDigital (IDCC)

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

Dividends

InterDigital pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Calix does not pay a dividend. InterDigital pays out 19.3% of its earnings in the form of a dividend.

Risk & Volatility

Calix has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, InterDigital has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

67.1% of Calix shares are owned by institutional investors. Comparatively, 72.9% of InterDigital shares are owned by institutional investors. 16.5% of Calix shares are owned by company insiders. Comparatively, 1.9% of InterDigital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Calix and InterDigital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calix -16.19% -43.76% -22.97%
InterDigital 42.94% 32.77% 14.02%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Calix and InterDigital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calix 0 2 0 0 2.00
InterDigital 0 2 2 0 2.50

Calix presently has a consensus target price of $6.50, suggesting a potential downside of 2.26%. InterDigital has a consensus target price of $94.00, suggesting a potential upside of 25.42%. Given InterDigital’s stronger consensus rating and higher probable upside, analysts plainly believe InterDigital is more favorable than Calix.

Valuation & Earnings

This table compares Calix and InterDigital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calix $458.79 million 0.73 -$27.40 million ($1.64) -4.05
InterDigital $665.85 million 3.91 $309.00 million $7.24 10.35

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

Summary

InterDigital beats Calix on 13 of the 15 factors compared between the two stocks.

Calix Company Profile

Calix, Inc. provides broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers (CSPs), to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide various services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. It develops and sells carrier-class hardware and cloud products. Its portfolio consists of three core systems and/or nodes: E-Series access systems and nodes (E-Series systems and nodes), B6 access nodes (B-Series nodes), and the C7 multiservice, multiprotocol access system (C-Series system). These systems and nodes are complemented by the P-Series optical network terminals and residential gateways, the GigaFamily of GigaCenters, GigaHubs, and GigaPoints, the Calix Management System, OpenLink Cable software and Compass Cloud family of software-as-a-service products.

InterDigital Company Profile

InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.

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