Financial Review: Xtera Communications (OTCMKTS:XCOMQ) and Viasat (NASDAQ:VSAT)

Viasat (NASDAQ:VSAT) and Xtera Communications (OTCMKTS:XCOMQ) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Profitability

This table compares Viasat and Xtera Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viasat	-0.64%	1.44%	0.45%
Xtera Communications	N/A	N/A	N/A

Institutional and Insider Ownership

86.0% of Viasat shares are held by institutional investors. 1.4% of Viasat shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Viasat and Xtera Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viasat	$4.64 billion	2.42	-$34.09 million	($0.24)	-339.21
Xtera Communications	N/A	N/A	N/A	N/A	N/A

Xtera Communications has lower revenue, but higher earnings than Viasat.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Viasat and Xtera Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viasat	1	2	7	1	2.73
Xtera Communications	0	0	0	0	0.00

Viasat presently has a consensus price target of $90.67, suggesting a potential upside of 11.37%. Given Viasat’s stronger consensus rating and higher probable upside, equities analysts clearly believe Viasat is more favorable than Xtera Communications.

Summary

Viasat beats Xtera Communications on 9 of the 10 factors compared between the two stocks.

About Viasat

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines and private business jets; satellite-based connectivity services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics. Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; and space systems design and satellite networking development systems. The company's Government Systems segment offers government mobile broadband products and services include mobile broadband modems, and terminals and network access control systems; mesh and hub-and-spoke satellite networking systems; secure networking, cybersecurity, and information assurance products; and tactical data link solutions. It designs and development of satellite and ground communications systems and network function virtualization, as well as ground-based network subsystems, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.

About Xtera Communications

Xtera Communications, Inc. is in the process of liquidation. Previously, it provided Raman amplification enabled optical transport systems for terrestrial and submarine networks worldwide. The company was founded in 1998 and is headquartered in Allen, Texas. On February 21, 2017, the voluntary petition of Xtera Communications, Inc. for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on November 15, 2016.