Analyzing Aerohive Networks (HIVE) & Itron (NASDAQ:ITRI)

Aerohive Networks (NYSE: HIVE) and Itron (NASDAQ:ITRI) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitabiliy, risk, dividends and analyst recommendations.

Volatility & Risk

Aerohive Networks has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Itron has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Aerohive Networks and Itron, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 3 4 0 2.57
Itron 0 1 6 0 2.86

Aerohive Networks currently has a consensus target price of $6.29, suggesting a potential upside of 31.87%. Itron has a consensus target price of $73.43, suggesting a potential upside of 1.98%. Given Aerohive Networks’ higher possible upside, equities analysts clearly believe Aerohive Networks is more favorable than Itron.

Earnings and Valuation

This table compares Aerohive Networks and Itron’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aerohive Networks $166.05 million 1.52 -$27.46 million ($0.65) -7.34
Itron $1.99 billion 1.40 $218.61 million $0.96 75.00

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

Profitability

This table compares Aerohive Networks and Itron’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -20.12% -109.99% -22.33%
Itron 1.88% 15.51% 6.22%

Insider and Institutional Ownership

53.3% of Aerohive Networks shares are held by institutional investors. Comparatively, 94.5% of Itron shares are held by institutional investors. 26.2% of Aerohive Networks shares are held by insiders. Comparatively, 2.0% of Itron shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Itron beats Aerohive Networks on 9 of the 13 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

About Itron

Itron, Inc. (Itron) is a technology and service company. The Company provides solutions that measure, manage and analyze energy and water use. The Company operates through three segments: Electricity, Gas and Water. It provides a portfolio of products, solutions, software and services to electric, gas and water utility customers across the globe. It offers solutions that enable electric and natural gas utilities to build smart grids to manage assets. It offers a product portfolio, including standard meters and smart metering products, systems and services, for applications in the residential and commercial industrial markets for water and heat. The Company operates under the Itron brand across the world. Its Gas and Water manufacturing facilities are located throughout the world, while its Electricity manufacturing facilities are located in Europe, Middle East and Africa (EMEA), and North America.

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