Gigamon (NYSE:GIMO) vs. Juniper Networks (JNPR) Financial Comparison

Gigamon (NYSE: GIMO) and Juniper Networks (NYSE:JNPR) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitabiliy, risk and valuation.

Insider & Institutional Ownership

84.2% of Gigamon shares are owned by institutional investors. Comparatively, 89.5% of Juniper Networks shares are owned by institutional investors. 4.5% of Gigamon shares are owned by insiders. Comparatively, 3.4% of Juniper Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Gigamon and Juniper Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gigamon 0 8 4 0 2.33
Juniper Networks 3 12 9 1 2.32

Gigamon currently has a consensus price target of $46.70, indicating a potential upside of 21.61%. Juniper Networks has a consensus price target of $30.18, indicating a potential upside of 3.62%. Given Gigamon’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Gigamon is more favorable than Juniper Networks.

Risk & Volatility

Gigamon has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Juniper Networks has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Gigamon and Juniper Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gigamon 14.12% 3.45% 2.31%
Juniper Networks 12.10% 13.59% 7.04%

Dividends

Juniper Networks pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Gigamon does not pay a dividend. Juniper Networks pays out 25.0% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Gigamon and Juniper Networks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gigamon $313.21 million 4.50 $28.17 million $1.18 32.54
Juniper Networks $5.11 billion 2.18 $1.14 billion $1.60 18.21

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

Summary

Juniper Networks beats Gigamon on 9 of the 17 factors compared between the two stocks.

Gigamon Company Profile

Gigamon Inc. offers a solution that delivers visibility and control of data-in-motion traversing enterprise, federal and service provider networks. The Company’s Visibility Platform consists of a distributed system of nodes (that in combination establish a Visibility Fabric). The Visibility Platform includes physical appliances and virtual nodes that can be deployed in data centers, central offices, virtualized/private cloud/public cloud environments, and small form-factor remote site appliances, which in combination enable pervasive visibility of network infrastructures. Its GigaSECURE Security Delivery Platform enables security teams and information technology (IT) personnel to gain visibility into their IT infrastructure by forwarding selected traffic of interest from network, server and remote location infrastructure to security, management, analysis and compliance tools in a manner that is optimized for specific uses or functions.

Juniper Networks Company Profile

Juniper Networks, Inc. designs, develops and sells products and services for high-performance networks to enable customers to build networks for their businesses. The Company sells its products in over 100 countries in three geographic regions: Americas; Europe, the Middle East and Africa, and Asia Pacific. The Company sells its high-performance network products and service offerings across routing, switching and security. Its products address network requirements for global service providers, cloud providers, national governments, research and public sector organizations, and other enterprises. The Company offers its customers various services, including technical support, professional services, education and training programs. The Company’s Junos Platform enables its customers to expand network software into the application space, and deploy software clients to control delivery. The Junos Platform includes a range of products, such as Junos Operating System (OS) and Junos Space.

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