Head to Head Survey: Pixelworks (NASDAQ:PXLW) & A10 Networks (NYSE:ATEN)

A10 Networks (NYSE:ATEN) and Pixelworks (NASDAQ:PXLW) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares A10 Networks and Pixelworks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A10 Networks	$290.56 million	6.45	$42.14 million	$0.60	43.03
Pixelworks	$690,000.00	60.18	-$22.50 million	($1.63)	-4.21

A10 Networks has higher revenue and earnings than Pixelworks. Pixelworks is trading at a lower price-to-earnings ratio than A10 Networks, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

98.6% of A10 Networks shares are held by institutional investors. Comparatively, 21.4% of Pixelworks shares are held by institutional investors. 1.2% of A10 Networks shares are held by company insiders. Comparatively, 4.7% of Pixelworks shares are held 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.

Analyst Recommendations

This is a summary of current ratings and price targets for A10 Networks and Pixelworks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A10 Networks	0	5	2	0	2.29
Pixelworks	1	0	2	0	2.33

A10 Networks currently has a consensus target price of $30.88, suggesting a potential upside of 19.58%. Pixelworks has a consensus target price of $16.00, suggesting a potential upside of 133.10%. Given Pixelworks’ stronger consensus rating and higher probable upside, analysts clearly believe Pixelworks is more favorable than A10 Networks.

Profitability

This table compares A10 Networks and Pixelworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A10 Networks	13.85%	23.63%	8.09%
Pixelworks	N/A	-28.77%	-14.64%

Volatility and Risk

A10 Networks has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Pixelworks has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Summary

A10 Networks beats Pixelworks on 8 of the 13 factors compared between the two stocks.

About A10 Networks

A10 Networks, Inc. provides networking solutions in the Americas, Japan, rest of Asia Pacific, Europe, the Middle East, and Africa. The company offers Thunder Application Delivery Controller that provides advanced server load balancing; Thunder Carrier Grade Networking, which provides standards-compliant address and protocol translation services between varying types of internet protocol addresses; Thunder Secure Sockets Layer (SSL) Insight that decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection; and Thunder Convergent Firewall, which addresses multiple critical security capabilities in one package. It also provides intelligent management and automation tool comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery. In addition, the company offers A10 Defend Threat Control, a standalone SaaS platform; A10 Defend Orchestrator provides a centralized point of control for seamless distributed denial of service (DDoS) defense management and execution; A10 Defend Detector, a Netflow, Sflow, IPFIX-based DDoS detector used to easily manage the scale and heterogenous nature of SP networks; and A10 Defend Mitigator, a precision, automated, scalable, and intelligent DDoS mitigation solution. It delivers its solutions in optimized hardware appliances, bare metal software, containerized software, virtual appliances, and cloud-native software forms. The company serves cloud providers; cloud, telecommunications, and multiple system and cable service providers; government organizations; and enterprises in the telecommunications, technology, industrial, government, retail, financial, gaming, and education industries. It markets its products through sales organizations; and distribution channel partners, such as distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

About Pixelworks

Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.