Contrasting Sierra Wireless (SWIR) and Harris Corporation (HRS)
Sierra Wireless (NASDAQ: SWIR) and Harris Corporation (NYSE:HRS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Volatility and Risk
Sierra Wireless has a beta of 3.15, suggesting that its share price is 215% more volatile than the S&P 500. Comparatively, Harris Corporation has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Harris Corporation pays an annual dividend of $2.28 per share and has a dividend yield of 1.7%. Sierra Wireless does not pay a dividend. Harris Corporation pays out 51.5% of its earnings in the form of a dividend. Harris Corporation has increased its dividend for 15 consecutive years.
This table compares Sierra Wireless and Harris Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Sierra Wireless and Harris Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sierra Wireless||$651.88 million||1.09||$42.36 million||$0.62||35.73|
|Harris Corporation||$5.90 billion||2.75||$1.40 billion||$4.43||30.62|
Harris Corporation has higher revenue and earnings than Sierra Wireless. Harris Corporation is trading at a lower price-to-earnings ratio than Sierra Wireless, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
24.9% of Sierra Wireless shares are owned by institutional investors. Comparatively, 84.5% of Harris Corporation shares are owned by institutional investors. 2.0% of Sierra Wireless shares are owned by insiders. Comparatively, 1.9% of Harris Corporation 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.
This is a breakdown of recent recommendations for Sierra Wireless and Harris Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sierra Wireless currently has a consensus price target of $26.28, indicating a potential upside of 18.65%. Harris Corporation has a consensus price target of $136.80, indicating a potential upside of 0.86%. Given Sierra Wireless’ higher probable upside, equities analysts plainly believe Sierra Wireless is more favorable than Harris Corporation.
Harris Corporation beats Sierra Wireless on 13 of the 17 factors compared between the two stocks.
About Sierra Wireless
Sierra Wireless, Inc. is engaged in building the Internet of Things (IoT) with wireless solutions for organizations. The Company’s OEM Solution segment offers cellular embedded wireless modules for IoT connectivity, including an embedded application framework to support customer applications. The Company’s Enterprise Solution segment offers intelligent routers and gateways, including management tools and applications that enable cellular connectivity. The Company’s Cloud and Connectivity Services segment offers a cloud based platform for deploying and managing IoT applications, Smart SIM supported by mobile core networks, and managed wireless broadband services to enable customer IoT deployments. The Company offers a portfolio of second generation, third generation, and fourth generation cellular embedded wireless modules and gateways, integrated with its secure cloud and connectivity services. The Company offers its products to original equipment manufacturers (OEMs) and enterprises.
About Harris Corporation
Harris Corporation is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. It offers its products and services to government and commercial customer. It operates in four segments: Communication Systems, which serves markets in tactical communications and defense, and public safety networks; Space and Intelligence Systems, which provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems, which offers a portfolio of solutions in electronic warfare, avionics, wireless and technology, among others, and Critical Networks, which provides managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as information technology (IT) and engineering services.
Receive News & Ratings for Sierra Wireless Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sierra Wireless Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.