Critical Survey: Alvarion (OTCMKTS:ALVRQ) vs. Ciena (OTCMKTS:CIEN)

Alvarion (OTCMKTS:ALVRQ) and Ciena (NYSE:CIEN) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Analyst Ratings

This is a summary of current recommendations for Alvarion and Ciena, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alvarion 0 0 0 0 N/A
Ciena 1 9 13 0 2.52

Ciena has a consensus target price of $46.86, indicating a potential upside of 13.94%. Given Ciena’s higher possible upside, analysts clearly believe Ciena is more favorable than Alvarion.

Risk & Volatility

Alvarion has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Ciena has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Insider and Institutional Ownership

92.9% of Ciena shares are held by institutional investors. 1.0% of Alvarion shares are held by insiders. Comparatively, 1.2% of Ciena shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Alvarion and Ciena’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alvarion N/A N/A N/A
Ciena 5.98% 12.37% 6.59%

Valuation and Earnings

This table compares Alvarion and Ciena’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alvarion N/A N/A N/A N/A N/A
Ciena $3.09 billion 2.06 -$344.69 million $1.12 36.72

Alvarion has higher earnings, but lower revenue than Ciena.

Summary

Ciena beats Alvarion on 9 of the 9 factors compared between the two stocks.

Alvarion Company Profile

Alvarion Ltd. provides autonomous Wi-Fi network products worldwide. The company designs solutions for carrier Wi-Fi, enterprise connectivity, smart city, smart hospitality, and connected campuses and events. It offers BreezeACCESS, a wireless broadband access solution for license-exempt frequencies; BreezeMAX Extreme, a WiMAX 16e wireless broadband technology; BreezeNET, a point-to-point and point-to-multipoint networking solution for connecting buildings, campuses, industrial zones, and remote sites; and BreezeULTRA, a family of wireless broadband products that operate in the 4.9–5.9 GHz unlicensed frequency band. The company also provides WBS and WBSn, which are carrier-grade outdoor Wi-Fi base stations; WBSac, a carrier-grade Wi-Fi solution for buildings, workplaces, universities, schools, hospitals, hotels, and large stores; Arena Controller, a Wi-Fi cloud controller that acts as mediation device between the operator's control core and the Wi-Fi infrastructure; and Star Management Suite, a set of carrier-class tools, which support the wireless broadband life-cycle – from initial installation to full service provision, and ongoing maintenance and support activities. It serves carriers, local governments, and hospitality sectors. The company was formerly known as BreezeCOM Ltd. and changed its name to Alvarion Ltd. as result of merger with Floware Wireless Systems Ltd. in August 2001. The company was founded in 1992 and is headquartered in Herzliya, Israel. Alvarion Ltd. is a subsidiary of SuperCom Ltd.

Ciena Company Profile

Ciena Corporation provides network hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide. The company's Networking Platforms segment offers hardware networking solutions optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching. Its products include 6500 Packet-Optical Platform, 5430 Reconfigurable Switching System, Waveserver stackable interconnect system, CoreDirector Multiservice Optical Switches, and OTN configuration for the 5410 Reconfigurable Switching System, as well as Z-Series Packet-Optical Platform; 3000 family of service delivery switches and service aggregation switches, and the 5000 family of service aggregation switches, as well as 8700 Packetwave Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch; and 6500 Packet Transport System. This segment also sells operating system software and enhanced software features embedded in each of its products. The company's Software and Software-Related Services segment offers multi-domain service orchestration, inventory, route optimization and assurance, network function virtualization orchestration, analytics, and related services; and OneControl unified management system and platform software services, as well as manage, control, and plan software. Its Global Services segment provides consulting and network design, installation and deployment, maintenance support, and training services. The company sells its products through direct and indirect sales channels to network operators. Ciena Corporation was founded in 1992 and is headquartered in Hanover, Maryland.

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