Avaya (NYSE:AVYA) and Fabrinet (NYSE:FN) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Avaya and Fabrinet, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Avaya | 0 | 3 | 7 | 0 | 2.70 |
Fabrinet | 0 | 3 | 5 | 0 | 2.63 |
Avaya currently has a consensus target price of $29.00, indicating a potential upside of 1.90%. Fabrinet has a consensus target price of $72.00, indicating a potential downside of 19.17%. Given Avaya's stronger consensus rating and higher possible upside, analysts clearly believe Avaya is more favorable than Fabrinet.
Profitability
This table compares Avaya and Fabrinet's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Avaya | -23.67% | 22.43% | 1.53% |
Fabrinet | 7.18% | 13.37% | 9.41% |
Risk & Volatility
Avaya has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Fabrinet has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
94.5% of Fabrinet shares are owned by institutional investors. 1.2% of Avaya shares are owned by company insiders. Comparatively, 0.7% of Fabrinet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Avaya and Fabrinet's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Avaya | $2.87 billion | 0.83 | $-680,000,000.00 | $3.28 | 8.68 |
Fabrinet | $1.64 billion | 2.00 | $113.48 million | $3.14 | 28.37 |
Fabrinet has lower revenue, but higher earnings than Avaya. Avaya is trading at a lower price-to-earnings ratio than Fabrinet, indicating that it is currently the more affordable of the two stocks.
Summary
Avaya beats Fabrinet on 8 of the 14 factors compared between the two stocks.