Orange (NYSE:ORAN) and Spirent Communications (OTCMKTS:SPMYY) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares Orange and Spirent Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
1.0% of Orange shares are held by institutional investors. 1.0% of Spirent Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for Orange and Spirent Communications, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Orange presently has a consensus target price of $16.00, suggesting a potential upside of 43.63%. Given Orange’s stronger consensus rating and higher probable upside, research analysts clearly believe Orange is more favorable than Spirent Communications.
Orange pays an annual dividend of $0.51 per share and has a dividend yield of 4.6%. Spirent Communications pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Orange pays out 44.7% of its earnings in the form of a dividend. Spirent Communications pays out 45.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Orange has increased its dividend for 2 consecutive years. Orange is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Orange and Spirent Communications’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Orange||$47.31 billion||0.63||$3.37 billion||$1.14||9.77|
|Spirent Communications||$503.60 million||3.83||$78.00 million||$0.53||23.77|
Orange has higher revenue and earnings than Spirent Communications. Orange is trading at a lower price-to-earnings ratio than Spirent Communications, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Orange has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Spirent Communications has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Orange beats Spirent Communications on 10 of the 14 factors compared between the two stocks.
Orange S.A. provides a range of fixed telephony and mobile telecommunications, data transmission, and other value-added services to consumers, businesses, and other telecommunications operators in Europe, Africa, and the Middle East. The company offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as fixed network business solutions, including voice and data; and convergence packages. It also sells mobile phones, broadband equipment, and connected objects and accessories. In addition, the company provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, advising, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, it offers national and international roaming services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors and brokers. The company markets its products and services under the Orange brand. Orange S.A. was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was founded in 1990 and is headquartered in Paris, France.
About Spirent Communications
Spirent Communications plc provides solutions to develop devices and equipment and to operate networks worldwide. The company operates through three segments: Networks & Security, Lifecycle Service Assurance, and Connected Devices. The Networks & Security segment develops performance and security test systems to accelerate the development of new devices, networks, and applications for high-speed Ethernet/IP, mobile, and global satellite navigation systems. The Lifecycle Service Assurance segment develops active test and analytics solutions for service turn-up, network performance improvement, and customer experience management. The Connected Devices develops automated test systems; and offers services to test new devices in the lab or on networks. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.
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