CEVA (NASDAQ:CEVA) and Viavi Solutions (NASDAQ:VIAV) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Risk & Volatility

CEVA has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Valuation & Earnings

This table compares CEVA and Viavi Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEVA $77.88 million 7.97 $570,000.00 $0.11 256.55
Viavi Solutions $1.13 billion 3.06 $5.40 million $0.52 28.98

Viavi Solutions has higher revenue and earnings than CEVA. Viavi Solutions is trading at a lower price-to-earnings ratio than CEVA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CEVA and Viavi Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CEVA -0.91% 0.94% 0.81%
Viavi Solutions 2.37% 17.53% 6.96%

Analyst Ratings

This is a breakdown of recent ratings for CEVA and Viavi Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEVA 0 4 2 0 2.33
Viavi Solutions 0 2 6 0 2.75

CEVA presently has a consensus price target of $31.25, indicating a potential upside of 10.74%. Viavi Solutions has a consensus price target of $15.88, indicating a potential upside of 5.34%. Given CEVA’s higher probable upside, research analysts plainly believe CEVA is more favorable than Viavi Solutions.

Institutional & Insider Ownership

82.8% of CEVA shares are owned by institutional investors. Comparatively, 94.5% of Viavi Solutions shares are owned by institutional investors. 3.8% of CEVA shares are owned by company insiders. Comparatively, 0.9% of Viavi Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Viavi Solutions beats CEVA on 9 of the 14 factors compared between the two stocks.

CEVA Company Profile

CEVA, Inc. licenses signal processing platforms and artificial intelligence processors for semiconductor companies and original equipment manufacturers (OEMs) serving the mobile, consumer, automotive, industrial, and Internet-of-Things (IoT) markets worldwide. The company licenses a family of signal processing intellectual properties (IPs), including platforms for 5G baseband processing in handsets and base station RAN; integrated cellular IoT solutions; digital signal processor (DSP) platforms incorporating voice input algorithms and software for voice enabled devices; and DSP platforms for advanced imaging and computer vision in various camera-enabled devices, as well as a family of self-contained artificial intelligent (AI) processors that address a range of edge applications. The company also provides IPs for Bluetooth and Wi-Fi platforms. Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to wireless, consumer electronics, and automotive companies for incorporation into various end products. The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. CEVA, Inc. licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was founded in 1999 and is headquartered in Mountain View, California.

Viavi Solutions Company Profile

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military, and avionics customers worldwide. The company operates through Network Enablement, Service Enablement, and Optical Security and Performance Products segments. The Network Enablement segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The Service Enablement segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The Optical Security and Performance Products segment offers optical products for anti-counterfeiting, government, industrial, automotive, and consumer electronic markets, including 3D sensing applications. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1979 and is headquartered in San Jose, California.

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