Analyzing Belden (NYSE:BDC) and Aerohive Networks (HIVE)

Aerohive Networks (NYSE: HIVE) and Belden (NYSE:BDC) are both communications & networking – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares Aerohive Networks and Belden’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $169.82 million 1.32 -$36.91 million ($0.51) -8.18
Belden $2.36 billion 1.56 $128.00 million $1.44 60.42

Belden has higher revenue and earnings than Aerohive Networks. Aerohive Networks is trading at a lower price-to-earnings ratio than Belden, indicating that it is currently the more affordable of the two stocks.

Dividends

Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.2%. Aerohive Networks does not pay a dividend. Belden pays out 13.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Aerohive Networks and Belden, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 2 4 0 2.67
Belden 0 5 5 0 2.50

Aerohive Networks presently has a consensus price target of $6.31, indicating a potential upside of 51.32%. Belden has a consensus price target of $89.14, indicating a potential upside of 2.46%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, research analysts clearly believe Aerohive Networks is more favorable than Belden.

Profitability

This table compares Aerohive Networks and Belden’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -17.00% -103.45% -18.90%
Belden 4.03% 17.52% 6.76%

Institutional and Insider Ownership

46.1% of Aerohive Networks shares are held by institutional investors. 26.2% of Aerohive Networks shares are held by company insiders. Comparatively, 1.3% of Belden shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Aerohive Networks has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Belden has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500.

Summary

Belden beats Aerohive Networks on 11 of the 16 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

About Belden

Belden Inc. is a signal transmission solutions provider company. The Company operates through five segment: Broadcast Solutions (Broadcast), Enterprise Connectivity Solutions (Enterprise), Industrial Connectivity Solutions (Industrial Connectivity), Industrial IT Solutions (Industrial IT), and Network Security Solutions (Network Security). The segments design, manufacture, and market a portfolio of signal transmission solutions for applications used in a variety of end markets, including broadcast, enterprise, and industrial. The Company’s portfolio of signal transmission solutions provides transmission of data, sound, and video for various applications. The Company’s sells its products to distributors, end users, installers, and to original equipment manufacturers (OEMs). The Company has manufacturing facilities in the United States, other manufacturing and operating facilities in Brazil, Canada, China, Japan, Mexico, and St. Kitts, as well as in various countries in Europe.

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