Critical Contrast: ADTRAN (ADTN) versus Akoustis Technologies (AKTS)
ADTRAN (NASDAQ: AKTS) and Akoustis Technologies (NASDAQ:AKTS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Institutional & Insider Ownership
95.1% of ADTRAN shares are owned by institutional investors. Comparatively, 14.6% of Akoustis Technologies shares are owned by institutional investors. 2.5% of ADTRAN shares are owned by company insiders. Comparatively, 26.6% of Akoustis Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares ADTRAN and Akoustis Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ADTRAN||$666.58 million||1.32||$23.84 million||$0.89||20.73|
|Akoustis Technologies||$1.20 million||148.13||-$21.73 million||N/A||N/A|
ADTRAN has higher revenue and earnings than Akoustis Technologies.
ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. Akoustis Technologies does not pay a dividend. ADTRAN pays out 40.4% of its earnings in the form of a dividend.
Risk and Volatility
ADTRAN has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Akoustis Technologies has a beta of -0.58, indicating that its stock price is 158% less volatile than the S&P 500.
This is a summary of current ratings for ADTRAN and Akoustis Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ADTRAN presently has a consensus target price of $17.88, indicating a potential downside of 3.12%. Akoustis Technologies has a consensus target price of $12.50, indicating a potential upside of 56.25%. Given Akoustis Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Akoustis Technologies is more favorable than ADTRAN.
This table compares ADTRAN and Akoustis Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ADTRAN beats Akoustis Technologies on 8 of the 14 factors compared between the two stocks.
ADTRAN Company Profile
ADTRAN, Inc. provides networking and communications equipment worldwide. The company operates through two segments, Network Solutions and Services & Support. It offers access and aggregation solutions, including network management and subscriber services control and orchestration software within a SD-access architecture; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; and IP digital subscriber line access multiplexers. The company's access and aggregation solutions also comprise cabinet and outside-plant enclosures and services; pluggable optical transceivers, cables, and other miscellaneous materials; and other products and services. In addition, it provides customer devices comprising broadband customer premise solutions, such as passive optical network and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential and business gateways; Wi-Fi access points and related powering and switching infrastructure; enterprise session border controllers; carrier Ethernet services termination devices; voice over Internet protocol media gateways; and other products and services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; HDSL, ADSL, and other technologies; and other products and services. Additionally, it provides planning, engineering, program management, maintenance, support, installation, commissioning, and implementation services. The company serves communications service providers, distributed enterprises and small and medium-sized businesses, public and private enterprises, and individual users. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.
Akoustis Technologies Company Profile
Akoustis Technologies, Inc. engages in developing, designing, and manufacturing radio frequency (RF) filter products for the mobile wireless device industries. It offers RF filters for mobile wireless devices, such as smartphones and tablets, cellular infrastructure equipment, and WiFi premise equipment. The company focuses on manufacturing and commercializing its patented Bulk ONE acoustic wave technology to address the frequency-selectivity requirements in mobile smartphones, enhancing the efficiency and signal quality of mobile wireless devices and enabling The Internet of Things. Akoustis Technologies, Inc. was founded in 2014 and is headquartered in Huntersville, North Carolina.
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