Echelon (ELON) & Extreme Networks (NASDAQ:EXTR) Critical Survey
Extreme Networks (NASDAQ: EXTR) and Echelon (NASDAQ:ELON) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Risk & Volatility
Extreme Networks has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Echelon has a beta of -0.75, suggesting that its share price is 175% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Extreme Networks and Echelon, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Extreme Networks presently has a consensus price target of $16.70, indicating a potential upside of 109.80%. Given Extreme Networks’ higher probable upside, equities research analysts plainly believe Extreme Networks is more favorable than Echelon.
This table compares Extreme Networks and Echelon’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
87.0% of Extreme Networks shares are held by institutional investors. Comparatively, 25.9% of Echelon shares are held by institutional investors. 1.9% of Extreme Networks shares are held by insiders. Comparatively, 13.0% of Echelon shares are held 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.
Valuation & Earnings
This table compares Extreme Networks and Echelon’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Extreme Networks||$598.12 million||1.54||-$8.51 million||$0.34||23.41|
|Echelon||$31.67 million||1.18||-$4.62 million||($1.04)||-7.92|
Echelon has lower revenue, but higher earnings than Extreme Networks. Echelon is trading at a lower price-to-earnings ratio than Extreme Networks, indicating that it is currently the more affordable of the two stocks.
Extreme Networks beats Echelon on 11 of the 13 factors compared between the two stocks.
Extreme Networks Company Profile
Extreme Networks, Inc. provides software-driven networking solutions for enterprise customers worldwide. 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. It offers edge/access Ethernet switching systems that delivers Ethernet connectivity for edge of the network; aggregation/core Ethernet switching systems for aggregation, top-of-rack, and campus core environments; data center switching systems for enterprises and cloud data centers; and wireless access point products, as well as distributed Wi-Fi networks. The company also provides ExtremeControl, a network access control solution that allows the enterprises to unify the security of their wired and wireless networks with visibility and control over users, devices, and applications; and ExtremeAnalytics, a network-powered application analytics and optimization solution, which captures, aggregates, analyzes, correlates, and reports network data that enables in decision making and enhancing business performance. In addition, it offers ExtremeCloud, a wired and wireless cloud network management solution, which offers advanced visibility and control over users and applications. The company sells and markets its products through distributors, resellers, and field sales organizations. It serves enterprises and organizations in education, healthcare, manufacturing, hospitality, transportation, and logistics, as well as government agencies. Extreme Networks, Inc. was founded in 1996 and is headquartered in San Jose, California.
Echelon Company Profile
Echelon Corporation develops, markets, and sells embedded components, modules, edge servers, and software. The company offers chips, gateways, and design and management software to original equipment manufacturers under the LONWORKS and IzoT brands. It also provides a range of control networking solutions under the LumInsight and Lumewave by Echelon brands that consist of wired and wireless control nodes; smart gateways for interconnecting the control nodes; and a software-based Central Management System, which is used for startup, commissioning, management, and monitoring of the lighting network. The company markets its products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific/Japan through direct sales organization, third-party electronics representatives, value-added resellers, and distributors. Echelon Corporation was founded in 1988 and is headquartered in Santa Clara, California.
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