Polycom (NASDAQ: PLCM) and Oclaro (NASDAQ:OCLR) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Earnings & Valuation
This table compares Polycom and Oclaro’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oclaro||$600.97 million||1.89||$127.85 million||$0.89||7.57|
This is a breakdown of current recommendations and price targets for Polycom and Oclaro, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Oclaro has a consensus price target of $12.67, indicating a potential upside of 87.93%. Given Oclaro’s higher possible upside, analysts plainly believe Oclaro is more favorable than Polycom.
Institutional & Insider Ownership
92.4% of Polycom shares are held by institutional investors. Comparatively, 70.6% of Oclaro shares are held by institutional investors. 0.7% of Polycom shares are held by company insiders. Comparatively, 2.0% of Oclaro shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Polycom and Oclaro’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Polycom has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Oclaro has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Oclaro beats Polycom on 9 of the 12 factors compared between the two stocks.
Polycom, Inc. (Polycom) offers solutions for voice, video and content sharing and a line of support and service solutions. The Company operates in Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC) geographic segments. The Company’s video, voice and content-management and content-sharing solutions include applications for mobile devices, browser-based video collaboration, cloud-delivered services, conference room systems and home/work office solutions and immersive telepresence. It offers various products and solutions, which include UC Group Systems, UC Platform and UC Personal Devices. UC Group Systems includes group video, group voice and immersive telepresence systems. UC Platform includes universal collaboration servers, virtualization management, resource management, recording and streaming, and remote access technologies that constitute the RealPresence Platform. UC Personal Devices includes group video, group voice and immersive telepresence systems.
Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.
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