Reviewing QUANTENNA COMMS (QTNA) & Extreme Networks (NASDAQ:EXTR)

QUANTENNA COMMS (NASDAQ: QTNA) and Extreme Networks (NASDAQ:EXTR) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares QUANTENNA COMMS and Extreme Networks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QUANTENNA COMMS $156.57 million 3.78 $2.36 million N/A N/A
Extreme Networks $559.03 million 1.70 $34.08 million ($0.21) -41.10

Extreme Networks has higher revenue and earnings than QUANTENNA COMMS.

Analyst Recommendations

This is a summary of current ratings for QUANTENNA COMMS and Extreme Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QUANTENNA COMMS 0 0 7 0 3.00
Extreme Networks 0 1 3 0 2.75

QUANTENNA COMMS presently has a consensus target price of $24.20, suggesting a potential upside of 37.81%. Extreme Networks has a consensus target price of $8.25, suggesting a potential downside of 4.40%. Given QUANTENNA COMMS’s stronger consensus rating and higher possible upside, research analysts plainly believe QUANTENNA COMMS is more favorable than Extreme Networks.

Profitability

This table compares QUANTENNA COMMS and Extreme Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QUANTENNA COMMS N/A 2.36% 1.05%
Extreme Networks -4.12% 33.40% 7.20%

Institutional & Insider Ownership

31.6% of QUANTENNA COMMS shares are held by institutional investors. Comparatively, 82.1% of Extreme Networks shares are held by institutional investors. 22.6% of QUANTENNA COMMS shares are held by insiders. Comparatively, 1.9% of Extreme Networks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

QUANTENNA COMMS beats Extreme Networks on 6 of the 11 factors compared between the two stocks.

About QUANTENNA COMMS

Quantenna Communications, Inc. is engaged in the design, development and marketing of wireless communication solutions enabling wireless local area networking. The Company’s solutions are designed to deliver wireless fidelity (Wi-Fi) performance to support various connected devices accessing a pool of digital content. The Company combines its wireless systems and software expertise with radio frequency, mixed-signal and digital semiconductor design skills to provide solutions to its customers. Its products include QSR10G, QSR2000, QSR1000, QHS710 and MAUI. The Company offers its products for home networking applications, including home gateways, repeaters, and set-top boxes. Its solutions portfolio consists of various generations of its radio frequency chip and its digital baseband chip, which together support the Institute of Electrical and Electronics Engineers (IEEE) Wi-Fi standards, including 802.11n and 802.11ac.

About Extreme Networks

Extreme Networks, Inc. is a provider of network infrastructure equipment. The Company markets its products to business, governmental, healthcare, service provider and educational customers with a focus on corporate enterprises and metropolitan service providers on a global basis. The Company operates through the development and marketing of network infrastructure equipment segment. The Company’s products include ExtremeWireless, ExtremeSwitching, ExtremeControl, ExtremeManagement, ExtremeCloud, ExtremeAnalytics and ExtremeSecurity. The Company offers solutions in categories, which includes industry solutions, technology solutions and managed services solutions. The Company operates in three geographical areas: Americas, which includes the United States, Canada, Mexico, Central America and South America; EMEA, which includes Europe, Russia, Middle East and Africa, and APAC, which includes Asia Pacific, South Asia, India, Australia and Japan.

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