Oclaro (NASDAQ:OCLR) and Hanwha Q Cells (NASDAQ:HQCL) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
72.9% of Oclaro shares are held by institutional investors. Comparatively, 0.9% of Hanwha Q Cells shares are held by institutional investors. 2.0% of Oclaro shares are held 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.
This table compares Oclaro and Hanwha Q Cells’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oclaro||$543.17 million||0.00||$62.45 million||$0.44||N/A|
|Hanwha Q Cells||$2.18 billion||0.38||-$12.40 million||($0.11)||-89.36|
Oclaro has higher earnings, but lower revenue than Hanwha Q Cells. Hanwha Q Cells is trading at a lower price-to-earnings ratio than Oclaro, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Oclaro and Hanwha Q Cells, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hanwha Q Cells||1||0||0||0||1.00|
Oclaro presently has a consensus price target of $9.94, suggesting a potential upside of ∞. Given Oclaro’s stronger consensus rating and higher probable upside, research analysts plainly believe Oclaro is more favorable than Hanwha Q Cells.
This table compares Oclaro and Hanwha Q Cells’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hanwha Q Cells||-10.51%||-14.35%||-2.39%|
Risk and Volatility
Oclaro has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Hanwha Q Cells has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.
Oclaro beats Hanwha Q Cells on 12 of the 13 factors compared between the two stocks.
Oclaro Company Profile
Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems for the long-haul, metro, and data center markets worldwide. The company's products generate, detect, combine, and separate light signals in optical communications networks. It offers client side transceivers, including pluggable transceivers; line side transceivers; tunable laser transmitters, such as discrete lasers and co-packaged laser modulators; lithium niobate modulators to manipulate the phase or the amplitude of an optical signal; transponder modules for transmitter and receiver functions; and discrete lasers and receivers for metro and long-haul applications. The company markets its products through direct sales force, as well as through sales representatives and resellers. It serves network equipment manufacturers of telecommunications and datacom systems, hyperscale data center operators, and datacom module manufacturers. The company was formerly known as Bookham, Inc. and changed its name to Oclaro, Inc. in April 2009. Oclaro, Inc. was founded in 1988 and is headquartered in San Jose, California.
Hanwha Q Cells Company Profile
Hanwha Q CELLS Co., Ltd., a solar energy company, develops, manufactures, and sells solar cells and photovoltaic (PV) modules in South Korea, the United States, Europe, Japan, Australia, the People's Republic of China, India, Turkey, and internationally. Its principal products include PV cells, PV modules, silicon ingots, and silicon wafers. The company also develops and sells solar power projects; and offers engineering, procurement, and construction, as well as operation and management services. In addition, it offers services for the development and installation of ground-mounted and commercial rooftop PV systems. Hanwha Q CELLS Co., Ltd. serves utility companies and system integrators directly, as well as through third-party distributors. The company is headquartered in Seoul, South Korea. Hanwha Q CELLS Co., Ltd. is a subsidiary of Hanwha Solar Holdings Co., Ltd.
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