Plantronics (NYSE: PLT) and Ciena (NYSE:CIEN) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Get Plantronics alerts:
This table compares Plantronics and Ciena’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Plantronics has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Ciena has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Earnings & Valuation
This table compares Plantronics and Ciena’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ciena||$2.80 billion||1.26||$1.26 billion||$1.49||16.36|
Ciena has higher revenue and earnings than Plantronics. Ciena is trading at a lower price-to-earnings ratio than Plantronics, indicating that it is currently the more affordable of the two stocks.
Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Ciena does not pay a dividend. Plantronics pays out 22.1% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and recommmendations for Plantronics and Ciena, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Plantronics currently has a consensus price target of $60.00, suggesting a potential downside of 19.64%. Ciena has a consensus price target of $29.60, suggesting a potential upside of 21.44%. Given Ciena’s stronger consensus rating and higher possible upside, analysts plainly believe Ciena is more favorable than Plantronics.
Institutional & Insider Ownership
92.4% of Plantronics shares are owned by institutional investors. 3.2% of Plantronics shares are owned by insiders. Comparatively, 1.4% of Ciena shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Plantronics, Inc. designs, manufactures, and markets lightweight communications headsets, telephone headset systems, other communication endpoints, and accessories for the business and consumer markets under the Plantronics brand worldwide. The company also manufactures and markets specialty telephone products under the Clarity brand. Its primary products include corded and cordless communication headsets; audio processors; telephone systems; Bluetooth and corded products; personal computer and gaming headsets; and specialty products for hearing impaired individuals. The company designs its products for various markets and applications, such as offices and homes, contact centers, mobile phones and smartphones, tablets, computer and gaming, residential, and other specialty applications. Plantronics, Inc. sells its products through a network of distributors, retailers, wireless carriers, original equipment manufacturers, and telephony and other service providers. The company was founded in 1961 and is headquartered in Santa Cruz, California.
Ciena Corporation provides hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. The company's Networking Platforms segment offers hardware networking solutions optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching. Its products include 6500 Packet-Optical Platform and the 5430 Reconfigurable Switching System, Waveserver stackable interconnect system, CoreDirector Multiservice Optical Switches, and OTN configuration for the 5410 Reconfigurable Switching System, as well as Z-Series Packet-Optical Platform; 3000 family of service delivery switches and service aggregation switches, and the 5000 family of service aggregation switches, as well as 8700 Packetwave Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch; and 4200 Advanced Services Platform, 5100/5200 Advanced Services Platform, Common Photonic Layer, and 6100 Multiservice Optical Platform. This segment also sells operating system software and enhanced software features embedded in each of its products. The company's Software and Software-Related Services segment offers network management solutions, including the OneControl Unified Management System, ON-Center Network & Service Management Suite, Ethernet Services Manager, Optical Suite Release, and Planet Operate; and Blue Planet network virtualization, service orchestration, and network management software platform, as well as related installation, support, and consulting services. Its Global Services segment provides consulting and network design, installation and deployment, maintenance support, and training services. The company sells its products through direct and indirect sales channels to network operators. Ciena Corporation was founded in 1992 and is headquartered in Hanover, Maryland.