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

Insider & Institutional Ownership

52.0% of Aviat Networks shares are held by institutional investors. Comparatively, 5.5% of Superconductor Technologies shares are held by institutional investors. 6.0% of Aviat Networks shares are held by company insiders. Comparatively, 0.5% of Superconductor Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Aviat Networks and Superconductor Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aviat Networks 2.46% 5.66% 2.20%
Superconductor Technologies N/A -142.41% -120.84%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aviat Networks and Superconductor Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviat Networks 0 0 0 0 N/A
Superconductor Technologies 0 0 1 0 3.00

Superconductor Technologies has a consensus price target of $9.00, suggesting a potential upside of 800.00%. Given Superconductor Technologies’ higher probable upside, analysts plainly believe Superconductor Technologies is more favorable than Aviat Networks.

Earnings & Valuation

This table compares Aviat Networks and Superconductor Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aviat Networks $242.51 million 0.28 $1.84 million N/A N/A
Superconductor Technologies $1.56 million 3.53 -$8.13 million ($4.03) -0.25

Aviat Networks has higher revenue and earnings than Superconductor Technologies.

Risk & Volatility

Aviat Networks has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Superconductor Technologies has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Summary

Aviat Networks beats Superconductor Technologies on 8 of the 12 factors compared between the two stocks.

About Aviat Networks

Aviat Networks, Inc. designs, manufactures, and sells a range of wireless networking products, solutions, and services worldwide. Its products include broadband wireless access base stations and customer premises equipment for fixed and mobile networks; and point-to-point digital microwave radio systems for access, backhaul, trunking, and license-exempt applications, as well as supporting new network deployments, network expansion, and capacity upgrades. The company also offers network management software tools and applications, which enable operators to deploy, monitor, manage, and optimize its systems, as well as sources, supplies, and supports third party equipment, such as antennas, routers, optical transmission equipment, and other equipment to build and deploy telecommunications transmission network. In addition, it provides a suite of professional services, including planning, deployment, operation, optimization, and maintenance of customers' networks. The company serves mobile and fixed public, private, and broadcast network operators; federal, state, and local government agencies; and transportation, energy, and utility companies, as well as public safety agencies. It markets its products through a direct sales, service, and support organization, as well as through original equipment manufacturers and system integrators; indirectly through dealers, resellers, and sales representatives; and through online. The company was formerly known as Harris Stratex Networks, Inc. and changed its name to Aviat Networks, Inc. in January 2010. Aviat Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.

About Superconductor Technologies

Superconductor Technologies Inc., together with its subsidiaries, develops, produces, and commercializes high temperature superconductor materials and related technologies in the United States. It is involved in developing Conductus superconducting wire for power applications. The company was founded in 1987 and is headquartered in Austin, Texas.

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