Head-To-Head Analysis: Harmonic (NASDAQ:HLIT) versus CalAmp (NASDAQ:CAMP)

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Harmonic (NASDAQ:HLIT) and CalAmp (NASDAQ:CAMP) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Risk & Volatility

Harmonic has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, CalAmp has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.

Insider and Institutional Ownership

90.0% of Harmonic shares are held by institutional investors. Comparatively, 76.9% of CalAmp shares are held by institutional investors. 6.4% of Harmonic shares are held by company insiders. Comparatively, 4.9% of CalAmp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Harmonic and CalAmp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harmonic -7.27% -3.72% -1.60%
CalAmp -1.50% 9.04% 2.87%

Analyst Recommendations

This is a breakdown of recent recommendations for Harmonic and CalAmp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harmonic 0 0 4 0 3.00
CalAmp 1 1 5 0 2.57

Harmonic currently has a consensus price target of $9.67, suggesting a potential upside of 47.36%. CalAmp has a consensus price target of $19.71, suggesting a potential upside of 74.15%. Given CalAmp’s higher possible upside, analysts plainly believe CalAmp is more favorable than Harmonic.

Earnings and Valuation

This table compares Harmonic and CalAmp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harmonic $403.56 million 1.46 -$21.03 million $0.03 218.67
CalAmp $363.80 million 1.06 $18.40 million N/A N/A

CalAmp has lower revenue, but higher earnings than Harmonic.

Summary

CalAmp beats Harmonic on 7 of the 13 factors compared between the two stocks.

Harmonic Company Profile

Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide. Its products enable customers to create, prepare, and deliver a range of video and broadband services to consumer devices, including televisions, personal computers, laptops, tablets, and smart phones. The company operates in two segments, Video and Cable Access. The Video segment sells video processing, and production and playout solutions and services to cable operators, and satellite and telecommunications Pay-TV service providers, as well as to broadcast and media, including streaming media companies. This segment's video processing solutions include network management and application software, and hardware products, such as cloud media processing, broadcast and over-the-top encoders, contribution encoders, high-density transcoders and stream processing, multiscreen delivery, decoders and descramblers, and video servers. This segment also provides video-optimized storage systems; and unified video playout and processing software-as-a-service solutions. The Cable Access segment offers cable edge solutions and related services, including CableOS software-based cable access solutions; and narrowcast services gateway products primarily to cable operators. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, program management, technical design and planning, building and site preparation, integration and equipment installation, system testing, and training. Harmonic Inc. sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was founded in 1988 and is headquartered in San Jose, California.

CalAmp Company Profile

CalAmp Corp. provides in telematics systems, and software and subscription services in the United States, Latin America, Western Europe, Asia Pacific, the Middle East, Africa, and internationally. The company offers mobile resource management telematics devices for the Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also provides telematics products, including asset tracking units, mobile telematics devices, fixed and mobile wireless gateways, and routers. In addition, the company offers CalAmp Telematics Cloud platform, such as cloud-based application enablement and telematics service platforms that facilitate integration of its own applications, as well as those of third parties, through open application programming interfaces; and software as a service applications. It sells its products and services to customers in the automotive, insurance, transportation and logistics, government, construction, and utilities markets through direct sales organization, a channel partner program and an international network of licensees, and sales representatives, as well as its Websites and digital presence. The company was founded in 1981 and is headquartered in Irvine, California.

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