Harmonic (NASDAQ:HLIT) vs. Powerstorm (OTCMKTS:PSTO) Head to Head Analysis

Harmonic (NASDAQ:HLIT) and Powerstorm (OTCMKTS:PSTO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Profitability

This table compares Harmonic and Powerstorm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harmonic	7.72%	18.28%	10.41%
Powerstorm	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Harmonic and Powerstorm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harmonic	2	1	4	0	2.29
Powerstorm	0	0	0	0	0.00

Harmonic currently has a consensus price target of $12.33, indicating a potential upside of 31.50%. Given Harmonic’s stronger consensus rating and higher possible upside, research analysts plainly believe Harmonic is more favorable than Powerstorm.

Insider and Institutional Ownership

99.4% of Harmonic shares are owned by institutional investors. 1.2% of Harmonic shares are owned 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.

Volatility and Risk

Harmonic has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Powerstorm has a beta of -1.69, indicating that its share price is 269% less volatile than the S&P 500.

Valuation and Earnings

This table compares Harmonic and Powerstorm”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harmonic	$678.72 million	1.56	$39.22 million	$0.45	20.84
Powerstorm	N/A	N/A	N/A	N/A	N/A

Harmonic has higher revenue and earnings than Powerstorm.

Summary

Harmonic beats Powerstorm on 10 of the 10 factors compared between the two stocks.

About Harmonic

Harmonic Inc., together with its subsidiaries, provides broadband solutions worldwide. The company operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions to broadband operators; and cOS central cloud services, a subscription service for cOS customers. The Video segment sells video processing, production, and playout solutions and services to cable operators, and satellite and telco Pay-TV service providers, as well as to broadcast and media, including streaming media companies. Its video processing appliance solutions include network management and application software, and hardware products, such as encoders, video servers, high-density stream processing systems, and edge processors. This segment also provides VOS360 SaaS platform that provides both streaming and channel origination and distribution services; and software-as-a-service (SaaS) solutions, which enables the packaging and delivery of streaming services, including live streaming, VOD, catch-up TV, start-over TV, network-DVR and cloud-DVR services through HTTP streaming to various device along with dynamic and personal ad insertion. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, integration services, program management, technical design and planning, building and site preparation, integration and equipment installation, end-to-end system testing, and training, as well as SaaS-related support and deployment. It sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was incorporated in 1988 and is headquartered in San Jose, California.

About Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.