Financial Survey: UTStarcom (NASDAQ:UTSI) and Viscount Systems (NASDAQ:VSYS)

Viscount Systems (OTCMKTS:VSYS) and UTStarcom (NASDAQ:UTSI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Risk & Volatility

Viscount Systems has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500. Comparatively, UTStarcom has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Viscount Systems and UTStarcom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viscount Systems N/A N/A N/A
UTStarcom -5.45% -3.53% -2.10%

Institutional and Insider Ownership

3.6% of UTStarcom shares are owned by institutional investors. 91.3% of Viscount Systems shares are owned by company insiders. Comparatively, 2.7% of UTStarcom 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.

Valuation and Earnings

This table compares Viscount Systems and UTStarcom’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viscount Systems N/A N/A N/A N/A N/A
UTStarcom $65.82 million 0.94 -$3.91 million ($0.10) -17.40

Viscount Systems has higher earnings, but lower revenue than UTStarcom.

Analyst Recommendations

This is a breakdown of current ratings for Viscount Systems and UTStarcom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viscount Systems 0 0 0 0 N/A
UTStarcom 0 0 1 0 3.00

UTStarcom has a consensus price target of $2.50, indicating a potential upside of 43.68%. Given UTStarcom’s higher probable upside, analysts plainly believe UTStarcom is more favorable than Viscount Systems.

Summary

UTStarcom beats Viscount Systems on 5 of the 9 factors compared between the two stocks.

About Viscount Systems

Viscount Systems, Inc., through its subsidiary, Viscount Communication and Control Systems Inc., designs, manufactures, and sells access control and security products in North America. It offers intercom and physical access control systems, and emergency communications systems for various applications, including condominium/apartment building access and intercom; residential intercom; gated home/community access and intercom; seniors/government housing access, tracking, and intercom; elevator access and tracking; garage or perimeter gate control; and emergency communications. The company's principal product is the Enterphone intercom and access control system, a patented building entry control system that uses a building's internal phone wiring to allow access control for tenants, and intercom and access control between visitors and tenants. It also manufactures electronic entry access panels that can operate using the Enterphone system or dial-up telephone company lines. In addition, the company offers Enterphone iQ, a solution based on its MESH technology; MESH, a software-based building management system; Freedom, an Internet technology platform; and Liberty, a derivation of the Freedom for the smaller sized system access control market. Viscount Systems, Inc. was founded in 1969 and is headquartered in Burnaby, Canada.

About UTStarcom

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications worldwide. The company helps network operators to offer communication services for its customers. Its products line include various platforms that leverage its expertise in packet optical communications, routing and switching technologies, broadband access, wireless communications, and synchronization. The company's end-to-end broadband product portfolio, enhanced through in-house software defined networking based orchestration, enables mobile and fixed-line network operators and enterprises to build networks for a range of applications, including mobile backhaul, metro aggregation, broadband access, and Wi-Fi data offload. It is also leveraging its technology expertise to bring smart networked products to new applications, such as its GoBox automated refrigerated dispenser for retail stores. The company was founded in 1991 and is based in Admiralty, Hong Kong.

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