Juniper Networks (JNPR) & Oplink Communications (OPLK) Critical Review

Juniper Networks (NYSE: JNPR) and Oplink Communications (NASDAQ:OPLK) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares Juniper Networks and Oplink Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Juniper Networks $4.99 billion 2.17 $592.70 million $1.72 16.81
Oplink Communications N/A N/A N/A $0.05 N/A

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

Dividends

Juniper Networks pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Oplink Communications does not pay a dividend. Juniper Networks pays out 23.3% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Juniper Networks 12.77% 13.81% 7.20%
Oplink Communications N/A N/A N/A

Institutional and Insider Ownership

90.9% of Juniper Networks shares are owned by institutional investors. 2.6% of Juniper Networks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Juniper Networks and Oplink Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Juniper Networks 3 15 7 1 2.23
Oplink Communications 0 0 0 0 N/A

Juniper Networks currently has a consensus target price of $29.20, suggesting a potential upside of 0.98%.

Summary

Juniper Networks beats Oplink Communications on 10 of the 11 factors compared between the two stocks.

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.

Oplink Communications Company Profile

Oplink Communications, Inc. designs, manufactures and sells optical networking components and subsystems. The Company’s products expand optical bandwidth, amplify optical signals, monitor and protect wavelength performance, redirect light signals, ensure signal connectivity and provide signal transmission and reception within an optical network. The Company provides over 350 different products that are sold as components and modules, or is integrated into custom solutions. The Company’s products and solutions can be applied to all segments of the fiber optic network infrastructure including long-haul networks, metropolitan area networks (MANs), local area networks (LANs), wireless backhaul, Internet data centers and fiber-to-the-home (FTTH) networks.

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