Financial Survey: Viavi Solutions (NASDAQ:VIAV) vs. KVH Industries (NASDAQ:KVHI)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for KVH Industries and Viavi Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KVH Industries	1	0	0	0	1.00
Viavi Solutions	1	2	6	0	2.56

Viavi Solutions has a consensus price target of $22.13, indicating a potential downside of 9.55%. Given Viavi Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Viavi Solutions is more favorable than KVH Industries.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KVH Industries	-11.19%	-5.32%	-4.77%
Viavi Solutions	-3.38%	13.03%	4.55%

Risk & Volatility

KVH Industries has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Viavi Solutions has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

73.7% of KVH Industries shares are held by institutional investors. Comparatively, 95.5% of Viavi Solutions shares are held by institutional investors. 21.1% of KVH Industries shares are held by insiders. Comparatively, 1.8% of Viavi Solutions 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.

Valuation & Earnings

This table compares KVH Industries and Viavi Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KVH Industries	$113.83 million	1.15	-$11.05 million	($0.62)	-10.77
Viavi Solutions	$1.08 billion	5.22	$34.80 million	($0.18)	-135.89

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

Summary

Viavi Solutions beats KVH Industries on 12 of the 14 factors compared between the two stocks.

About KVH Industries

KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network management software for maritime communications; CommBox Edge, an advanced maritime network optimization and management solution; Starlink, a companion terminal for TracNet and TracPhone systems; KVH ONE, a global hybrid communication network supporting Internet, VoIP, content delivery, and other; and TracVision, a satellite television antenna system for vessels, recreational vehicles, buses, conversion vans, and automobiles. In addition, the company offers KVH Elite, a streaming service for leisure yachts; KVH OneCare, a services and support for TracNet and TracPhone systems; MOVIElink, a movie distribution solution; MUSIClink, a music and karaoke delivery solution; NEWSlink, a maritime news delivery solution; SPORTSlink, a sporting content delivery solution; TVlink, a television programming delivery solution; and news from home, a digital newspaper service. It sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles. The company was founded in 1982 and is headquartered in Middletown, Rhode Island.

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.