Extreme Networks (NASDAQ:EXTR) and HMS Networks AB (publ) (OTCMKTS:HMNKF) Financial Comparison

Extreme Networks (NASDAQ:EXTR) and HMS Networks AB (publ) (OTCMKTS:HMNKF) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Extreme Networks and HMS Networks AB (publ), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	0	2	6	0	2.75
HMS Networks AB (publ)	0	0	3	0	3.00

Extreme Networks currently has a consensus target price of $32.83, indicating a potential upside of 10.25%. Given Extreme Networks’ higher probable upside, research analysts plainly believe Extreme Networks is more favorable than HMS Networks AB (publ).

Earnings & Valuation

This table compares Extreme Networks and HMS Networks AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.14 billion	3.42	-$7.47 million	$0.12	248.17
HMS Networks AB (publ)	N/A	N/A	N/A	$5.61	8.68

HMS Networks AB (publ) has lower revenue, but higher earnings than Extreme Networks. HMS Networks AB (publ) is trading at a lower price-to-earnings ratio than Extreme Networks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Extreme Networks and HMS Networks AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	1.30%	81.88%	5.45%
HMS Networks AB (publ)	N/A	N/A	N/A

Institutional and Insider Ownership

91.0% of Extreme Networks shares are owned by institutional investors. 3.6% of Extreme Networks shares are owned 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

Extreme Networks beats HMS Networks AB (publ) on 9 of the 11 factors compared between the two stocks.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.

About HMS Networks AB (publ)

HMS Networks AB (publ) engages in the provision of products that enable industrial equipment to communicate and share information worldwide. The company offers Anybus Embedded that offers multi-network connectivity with a single development project; Anybus Gateways, a gateway for connecting devices, machines, systems, or networks; Anybus Wireless that allows to connect machines and devices over Bluetooth, Wi-Fi, cellular networks, and industrial Ethernet; and Anybus Diagnostics, which offers tools and services to monitor, analyze, and troubleshoot industrial networks. It also provides Ewon Cosy, an industrial VPN device for secure remote access; Ewon Flexy, an industrial device and IIoT gateways for flexible remote access and data services; Ewon Flexy Extension Cards, which allow to keep up with the evolution of communication technologies while protecting investment in the device; and Ewon Talk2M, an industrial cloud that enables its customers to access their assets; Ewon Netbiter, a gateway to remote connectivity for energy generation systems; and Argos, a IIoT cloud dashboard, as well as offers other IIoT softwares. In addition, the company offers Intesis protocol translators, air conditioner interfaces, AC Cloud control, and ST cloud control solutions; and PC interfaces, repeaters, bridges, routers, gateways, and safety solutions under the Ixxat brand. Further, it provides Owasys, a wireless communication platforms, as well as offers brand labeling, system, software, and maintenance solutions. The company offers its solutions to device manufactures, machine builders, system integrators, and end users. HMS Networks AB (publ) was founded in 1988 and is headquartered in Halmstad, Sweden.