Financial Review: Infinera (INFN) versus Zoom Technologies (ZOOM)

Infinera (NASDAQ:INFN) and Zoom Technologies (OTCMKTS:ZOOM) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Infinera and Zoom Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infinera 2 11 2 1 2.13
Zoom Technologies 0 0 0 0 N/A

Infinera presently has a consensus price target of $8.75, indicating a potential upside of 103.96%. Given Infinera’s higher possible upside, equities research analysts clearly believe Infinera is more favorable than Zoom Technologies.

Insider & Institutional Ownership

75.2% of Infinera shares are held by institutional investors. 3.0% of Infinera shares are held by insiders. Comparatively, 17.7% of Zoom Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Infinera and Zoom Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Infinera $740.74 million 1.01 -$194.50 million ($0.83) -5.17
Zoom Technologies N/A N/A N/A N/A N/A

Zoom Technologies has lower revenue, but higher earnings than Infinera.

Profitability

This table compares Infinera and Zoom Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infinera -19.18% -11.58% -6.99%
Zoom Technologies N/A N/A N/A

Risk and Volatility

Infinera has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Zoom Technologies has a beta of 114.97, suggesting that its share price is 11,397% more volatile than the S&P 500.

About Infinera

Infinera Corporation provides optical transport networking solutions, equipment, and software and services worldwide. The company's product portfolio consists of Infinera DTN-X Family of terabit-class transport network platforms, including the XTC Series, XTS Series, and XT Series; Infinera DTN-X XTC series multi-terabit packet optical transport platforms that integrate digital OTN switching and optical WDM transmission; and Infinera DTN-X XT series for terrestrial applications and XTS series for subsea applications. It also provides Infinera XTM Series packet-optical transport platform that enables high-performance metro networks with service-aware, application-specific capabilities; and Infinera Cloud Xpress Family designed to meet the varying needs of ICPs, communication service providers, Internet exchange service providers, enterprises, and other large-scale data center operators. In addition, the company offers Infinera FlexILS open line system platform that connects various Infinera and third-party terminal equipment platforms over long-distance fiber optic cable providing switching, multiplexing, amplification, and management channels. Further, it provides software solutions, including Xceed Software Suite that address long-haul, subsea, and metro networks, as well as a range of support services for all hardware and software products. The company also serves telecommunications service providers, Internet content providers, cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers, and government entities. It markets and sells its products and related support services primarily through its direct sales force. The company was formerly known as Zepton Networks. Infinera Corporation was founded in 2000 and is headquartered in Sunnyvale, California.

About Zoom Technologies

Zoom Technologies, Inc. does not have significant operations. Previously, it distributed wireless communication products in the United States. The company is headquartered in Beijing, China.

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