Contrasting FireEye (FEYE) and Radisys (RSYS)

FireEye (NASDAQ: FEYE) and Radisys (NASDAQ:RSYS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares FireEye and Radisys’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FireEye $751.09 million 4.49 -$303.69 million ($1.09) -16.12
Radisys $133.77 million 0.21 -$52.60 million ($0.55) -1.27

Radisys has lower revenue, but higher earnings than FireEye. FireEye is trading at a lower price-to-earnings ratio than Radisys, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

65.3% of FireEye shares are held by institutional investors. Comparatively, 38.4% of Radisys shares are held by institutional investors. 2.4% of FireEye shares are held by company insiders. Comparatively, 6.1% of Radisys shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for FireEye and Radisys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FireEye 0 10 13 0 2.57
Radisys 0 0 5 0 3.00

FireEye presently has a consensus target price of $19.02, suggesting a potential upside of 8.27%. Radisys has a consensus target price of $3.60, suggesting a potential upside of 414.29%. Given Radisys’ stronger consensus rating and higher probable upside, analysts plainly believe Radisys is more favorable than FireEye.

Profitability

This table compares FireEye and Radisys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FireEye -37.68% -25.25% -7.90%
Radisys -40.08% -100.29% -21.11%

Risk & Volatility

FireEye has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Radisys has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

FireEye Company Profile

FireEye, Inc. provides cybersecurity solutions that allow organizations to prepare for, prevent, respond to, and remediate cyber-attacks. It offers vector-specific appliance, virtual appliance, and cloud-based solutions to detect and block known and unknown cyber-attacks. The company provides threat detection and prevention solutions, including network security products, email security solutions, and endpoint security solutions. It also offers security management and orchestration products, such as Central Management System, FireEye Security Orchestrator, and FireEye Helix platform; and forensics and investigation products, such as Threat Analytics Platform and Enterprise Forensics series of appliances. In addition, the company provides Security-as-a-Service solutions comprising cloud-based Email Threat Prevention solution and managed Defense/FireEye-as-a-Service offering; threat intelligence subscriptions, such as Dynamic Threat Intelligence cloud and FireEye iSIGHT Intelligence; and customer support and maintenance services. Further, it offers professional services, including incident response, compromise assessments, and related security consulting services; cyber threat intelligence services; and training services. The company serves telecommunications providers, financial services entities, Internet search engines, social networking sites, stock exchanges, electrical grid operators, networking vendors, oil and gas companies, healthcare and pharmaceutical companies, and local and international governmental agencies. FireEye, Inc. provides its products and services through distributors, resellers, and strategic partners in the United States, the Asia Pacific, Japan, Europe, the Middle East, Africa, and other regions. The company was formerly known as NetForts, Inc. and changed its name to FireEye, Inc. in September 2005. FireEye, Inc. was founded in 2004 and is headquartered in Milpitas, California.

Radisys Company Profile

Radisys Corporation provides telecom solutions worldwide. It operates in two segments, Software-Systems and Hardware Solutions. The company's products include MediaEngine products that provide media processing capabilities required for applications, such as voice over long-term evolution (VoLTE), voice over Wi-Fi, Web real-time communication, and multimedia conferencing, as well as media interworking; and MobilityEngine, Its MobilityEngine products portfolio provide solutions for 4G, LTE-Advance and emerging 5G standards for RAN use cases, including Centralized, Virtualized and multi access edge compute (MEC). It also offers FlowEngine, which comprises data plane traffic distribution products that classify and distribute session data flows to network processing resources. In addition, the company develops telecommunications products and applications; and DCEngine products include open-based rack-scale systems that provide transformation to cloud based compute, storage, networking fabrics, and open source hardware and software. Further, it offers legacy embedded products, including ATCA, computer-on-module express, and rack mount servers that enable the control and movement of data in 3G and LTE telecom networks and provide the hardware enablement for network elements applications; enable image processing capabilities for healthcare markets; and enable energy-efficient computing capabilities for industrial deployments. The company sells its products through direct sales, distributors, sales representatives, and system integrators in North America, Europe, the Middle East, Africa, and the Asia Pacific. Radisys Corporation was founded in 1987 and is headquartered in Hillsboro, Oregon.

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