Analyzing F5 (NASDAQ:FFIV) and Viavi Solutions (NASDAQ:VIAV)

Viavi Solutions (NASDAQ:VIAV) and F5 (NASDAQ:FFIV) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

Viavi Solutions has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, F5 has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

95.5% of Viavi Solutions shares are held by institutional investors. Comparatively, 90.7% of F5 shares are held by institutional investors. 1.2% of Viavi Solutions shares are held by insiders. Comparatively, 0.5% of F5 shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Viavi Solutions and F5″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viavi Solutions	$1.52 billion	5.96	-$30.40 million	($0.15)	-245.47
F5	$3.09 billion	8.37	$692.38 million	$12.56	36.35

F5 has higher revenue and earnings than Viavi Solutions. Viavi Solutions is trading at a lower price-to-earnings ratio than F5, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Viavi Solutions and F5’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viavi Solutions	-2.00%	19.60%	7.48%
F5	21.95%	21.54%	12.16%

Analyst Ratings

This is a summary of recent recommendations and price targets for Viavi Solutions and F5, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viavi Solutions	1	2	6	0	2.56
F5	1	5	5	0	2.36

Viavi Solutions presently has a consensus target price of $55.43, suggesting a potential upside of 50.54%. F5 has a consensus target price of $426.00, suggesting a potential downside of 6.70%. Given Viavi Solutions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Viavi Solutions is more favorable than F5.

Summary

F5 beats Viavi Solutions on 8 of the 14 factors compared between the two stocks.

About Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers an integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in Chandler, AZ.

About F5

F5, Inc. provides multi-cloud application security and delivery solutions in the United States, Europe, the Middle East, Africa, and the Asia Pacific region. The company’s distributed cloud services enable its customers to deploy, secure, and operate applications in any architecture, from on-premises to the public cloud. It offers unified, security, networking, and application management solutions, such as web app and API protection; multi-cloud networking; application delivery and deployment; domain name system; content delivery network; and application deployment and orchestration. The company also provides application security and delivery products, including NGINX Plus; NGINX Management Suite; NGINX Ingress Controller; NGINX App Protect; BIG-IP Packaged Software; and BIG-IP Systems. In addition, it provides a range of professional services, including maintenance, consulting, training, and other technical support services. F5, Inc. sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, systems integrators, and other indirect channel partners. It has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The company was formerly known as F5 Networks, Inc. and changed its name to F5, Inc. in November 2021. F5, Inc. was incorporated in 1996 and is headquartered in Seattle, Washington.