Head to Head Analysis: China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY) & Viavi Solutions (NASDAQ:VIAV)

Viavi Solutions (NASDAQ:VIAV) and China Techfaith Wireless Communication Technology (OTCMKTS:CNTFY) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Viavi Solutions and China Techfaith Wireless Communication Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viavi Solutions	$1.37 billion	6.66	$34.80 million	($0.24)	-162.08
China Techfaith Wireless Communication Technology	N/A	N/A	N/A	N/A	N/A

Viavi Solutions has higher revenue and earnings than China Techfaith Wireless Communication Technology.

Insider & Institutional Ownership

95.5% of Viavi Solutions shares are owned by institutional investors. 1.8% of Viavi Solutions shares are owned by company insiders. Comparatively, 33.3% of China Techfaith Wireless Communication Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Viavi Solutions has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, China Techfaith Wireless Communication Technology has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Viavi Solutions and China Techfaith Wireless Communication Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viavi Solutions	1	2	6	0	2.56
China Techfaith Wireless Communication Technology	0	0	0	0	0.00

Viavi Solutions presently has a consensus price target of $42.88, indicating a potential upside of 10.22%. Given Viavi Solutions’ stronger consensus rating and higher probable upside, equities analysts plainly believe Viavi Solutions is more favorable than China Techfaith Wireless Communication Technology.

Profitability

This table compares Viavi Solutions and China Techfaith Wireless Communication Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viavi Solutions	-4.03%	16.80%	5.70%
China Techfaith Wireless Communication Technology	N/A	N/A	N/A

Summary

Viavi Solutions beats China Techfaith Wireless Communication Technology on 7 of the 10 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 China Techfaith Wireless Communication Technology

China TechFaith Wireless Communication Technology Limited engages in the original design and development of specialized mobile handsets for consumers and enterprises in the People's Republic of China and internationally. It operates through Mobile Phone Business and Real Estate segments. The company offers handset design services through outsourcing of EMS providers who engage in assembly and manufacturing operations; and offer testing services of the assembled printed circuit boards, systems, and subsystems for Chinese mobile handset brand owners and international mobile handset brand owners. It also provides feature phones, smart phones, ruggedized phones, wireless modules, smart pads, and wireless software and applications, as well as other electronic components, such as industrial wireless devices. In addition, the company sells mobile handset products under the Tecface, 17FOX, and MOBIFOX brands. Further, it owns, develops, operates, and manages commercial real estate properties. The company was founded in 2002 and is headquartered in Beijing, the People's Republic of China.