Ciena (NYSE:CIEN) and Juniper Networks (NYSE:JNPR) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Insider and Institutional Ownership
84.0% of Ciena shares are owned by institutional investors. Comparatively, 89.3% of Juniper Networks shares are owned by institutional investors. 1.0% of Ciena shares are owned by insiders. Comparatively, 1.2% of Juniper Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Ciena and Juniper Networks' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ciena | $3.53 billion | 2.23 | $361.29 million | $2.65 | 19.17 |
Juniper Networks | $4.45 billion | 1.77 | $345 million | $1.21 | 19.76 |
Ciena has higher earnings, but lower revenue than Juniper Networks. Ciena is trading at a lower price-to-earnings ratio than Juniper Networks, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Ciena and Juniper Networks, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ciena | 0 | 5 | 16 | 0 | 2.76 |
Juniper Networks | 3 | 6 | 7 | 0 | 2.25 |
Ciena presently has a consensus target price of $58.3611, indicating a potential upside of 14.91%. Juniper Networks has a consensus target price of $24.7222, indicating a potential upside of 3.40%. Given Ciena's stronger consensus rating and higher possible upside, research analysts clearly believe Ciena is more favorable than Juniper Networks.
Volatility and Risk
Ciena has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Juniper Networks has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Profitability
This table compares Ciena and Juniper Networks' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ciena | 10.23% | 17.41% | 10.25% |
Juniper Networks | 8.92% | 8.30% | 4.29% |
Summary
Ciena beats Juniper Networks on 10 of the 14 factors compared between the two stocks.