Aviat Networks (NASDAQ:AVNW) vs. Lantronix (NASDAQ:LTRX) Head to Head Survey

Aviat Networks (NASDAQ:AVNW) and Lantronix (NASDAQ:LTRX) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Aviat Networks and Lantronix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aviat Networks	0.58%	5.85%	2.49%
Lantronix	-3.46%	-4.88%	-3.21%

Analyst Ratings

This is a summary of recent ratings and price targets for Aviat Networks and Lantronix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aviat Networks	1	1	8	0	2.70
Lantronix	1	0	6	0	2.71

Aviat Networks presently has a consensus price target of $32.71, suggesting a potential upside of 67.17%. Lantronix has a consensus price target of $10.80, suggesting a potential upside of 82.43%. Given Lantronix’s stronger consensus rating and higher probable upside, analysts plainly believe Lantronix is more favorable than Aviat Networks.

Risk & Volatility

Aviat Networks has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Lantronix has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

78.6% of Aviat Networks shares are held by institutional investors. Comparatively, 39.4% of Lantronix shares are held by institutional investors. 5.7% of Aviat Networks shares are held by company insiders. Comparatively, 2.8% of Lantronix shares are held 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.

Valuation and Earnings

This table compares Aviat Networks and Lantronix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aviat Networks	$439.68 million	0.57	$2.54 million	$0.19	103.00
Lantronix	$120.90 million	2.30	-$4.18 million	($0.11)	-53.82

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

Summary

Aviat Networks beats Lantronix on 9 of the 13 factors compared between the two stocks.

About Aviat Networks

Aviat Networks, Inc. provides microwave networking and wireless access networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers, switches, and trunking; and private LTE, virtual fiber, and element management products; and hosted software products, such as aviat design, frequency assurance software, and health assurance software. It also provides project services, which includes design and engineering, site and path surveys, assembly and integrations, project management, and install and commission; and managed services, such as network and interface monitoring, network health, onsite maintenance, and remote upgrades. In addition, the company offers support services, including extended warranty, warranty plus, provision support, and license key management, as well as instructor and virtual instructor led training, e-learning and certification services. It serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. company was incorporated in 2006 and is headquartered in Austin, Texas.

About Lantronix

Lantronix, Inc. provides solutions for video surveillance, infotainment systems, and intelligent substations infrastructure in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company's IoT products include IoT System Solutions, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, power for IoT end devices through Power over Ethernet, application hosting, protocol conversion, media conversion, secure access for distributed IoT deployments, and various other functions; Embedded IoT Modules, such as application processing delivering compute to meet customer needs for data transformation, computer vision, machine learning, augmented/virtual reality, audio/video aggregation and distribution, and custom applications; and Software and Engineering Services offers SaaS platform that enables customers to deploy, monitor, manage, and automate across their global deployments through a single platform login. It also offers telematics devices, which provides power efficient products designed to support communications across interfaces and industrial protocols for vehicle, fleet, and asset tracking and management; network switches, media converters, power over ethernet, NICS and optical SFPs, system on modules, and development kits; and services for mechanical, hardware, and software engineering for camera, audio, and artificial intelligence/machine learning development. In addition, the company provides console management, power management, and IP connected keyboard-video-mouse products that offers remote access to IT and networking infrastructure deployed in test labs, data centers, branch offices, remote sites, and server rooms; and hardware engineering, software engineering, and mechanical engineering, rapid prototyping and quality assurance engineering services. Lantronix, Inc. was incorporated in 1989 and is based in Irvine, California.