Comparing Westell Technologies (WSTL) and Avaya (AVYA)

Westell Technologies (NASDAQ:WSTL) and Avaya (NYSE:AVYA) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Westell Technologies and Avaya’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westell Technologies 1.02% 7.09% 6.08%
Avaya 104.03% 4,097.00% 46.41%

Analyst Recommendations

This is a breakdown of recent recommendations for Westell Technologies and Avaya, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westell Technologies 0 0 0 0 N/A
Avaya 0 1 2 0 2.67

Avaya has a consensus target price of $28.33, indicating a potential upside of 30.33%. Given Avaya’s higher possible upside, analysts plainly believe Avaya is more favorable than Westell Technologies.

Institutional & Insider Ownership

21.0% of Westell Technologies shares are held by institutional investors. Comparatively, 98.8% of Avaya shares are held by institutional investors. 25.6% of Westell Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Westell Technologies and Avaya’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westell Technologies $58.58 million 0.71 $30,000.00 $0.20 13.40
Avaya $3.27 billion 0.73 -$182.00 million N/A N/A

Westell Technologies has higher earnings, but lower revenue than Avaya.

Summary

Avaya beats Westell Technologies on 8 of the 10 factors compared between the two stocks.

About Westell Technologies

Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States. The company operates through three segments: In-Building Wireless (IBW), Intelligent Site Management and Services (ISMS), and Communications Network Solutions (CNS). The IBW segment offers distributed antenna system conditioners; repeaters; battery backup units; and system components and antennas, including couplers, duplexers, splitters, filters, and tappers for commercial and public safety in-building wireless systems. The ISMS segment provides a suite of remote units, which provide machine-to-machine communications that enable operators to remotely monitor, manage, and control site infrastructure and support systems. The CNS segment provides a range of outdoor network infrastructure, such as integrated cabinets, power distribution products, copper and fiber connectivity panels, T1 network interface units, and tower mounted amplifiers. The company serves wireless and wireline service providers, multiple systems operators, Internet service providers, systems integrators, neutral host operators, and distributors through field sales organization, distributors, and partners. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.

About Avaya

Avaya Holdings Corp. operates as a holding company which through its subsidiary, develops business collaboration and communications solutions worldwide. The company was formerly known as Sierra Holdings Corp. The company was incorporated in 2007 and is based in Santa Clara, California.

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