Head-To-Head Contrast: ARRIS International (ARRS) & Energous (WATT)

ARRIS International (NASDAQ:ARRS) and Energous (NASDAQ:WATT) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for ARRIS International and Energous, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARRIS International 1 3 3 0 2.29
Energous 0 0 3 0 3.00

ARRIS International presently has a consensus price target of $29.29, suggesting a potential upside of 28.05%. Energous has a consensus price target of $30.50, suggesting a potential upside of 218.04%. Given Energous’ stronger consensus rating and higher possible upside, analysts plainly believe Energous is more favorable than ARRIS International.

Earnings and Valuation

This table compares ARRIS International and Energous’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARRIS International $6.61 billion 0.62 $92.02 million $2.43 9.41
Energous $1.15 million 213.65 -$49.37 million ($2.31) -4.15

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

Insider and Institutional Ownership

87.3% of ARRIS International shares are held by institutional investors. Comparatively, 23.9% of Energous shares are held by institutional investors. 1.0% of ARRIS International shares are held by company insiders. Comparatively, 6.8% of Energous shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ARRIS International and Energous’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARRIS International 1.83% 16.82% 7.09%
Energous -9,750.39% -182.29% -159.24%

Volatility & Risk

ARRIS International has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Energous has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Summary

ARRIS International beats Energous on 8 of the 13 factors compared between the two stocks.

About ARRIS International

ARRIS International plc, together with its subsidiaries, provides entertainment, communications, and networking technology and solutions worldwide. It operates through three segments: Customer Premises Equipment, Network & Cloud, and Enterprise Networks. The Customer Premises Equipment segment offers digital subscriber lines and cable modems, broadband gateways, set-top boxes, and video gateways. The Network & Cloud segment provides cable modem termination system, converged cable access platform, passive optical network, service provider and programmer equipment, Ad insertion technologies, and equipment in the ground or on transmission poles, as well as equipment used to initiate the distribution of content-carrying signals. This segment also offers technical support and professional services; software products that enable providers to deliver content and advertising services; network management products that collect information from the broadband network; and customer experience management solutions, as well as network surveillance and issue correlation software and services. The Enterprise Networks segment provides wired Ethernet switches; and indoor, outdoor, and special-purpose Wi-Fi access points, as well as accessories, such as antennas. This segment also offers SmartCell Insight, a big data Wi-Fi analytics and reporting platform; ZonePlanner, a Wi-Fi planning and modeling software; Smart Positioning Technology, a cloud-based smart Wi-Fi location-based services platform; Cloudpath Wi-Fi device; mobile apps for controllers, cloud Wi-Fi, location, and performance testing; Ruckus Cloud Wi-Fi, a wireless local area network management-as-a-service; and ZoneDirector, a smart Wi-Fi controller. The company was formerly known as ARRIS Group, Inc. and changed its name to ARRIS International plc in January 2016. ARRIS International plc was founded in 1969 and is headquartered in Suwanee, Georgia.

About Energous

Energous Corp. engages in the development of technology that enables wireless charging for electronic devices. It focuses on their product, WattUp, a wire-free charging technology that will transform the way consumers and industries charge and power electronic devices at home, in the office and car. The company was founded by Michael Leabman on October 30, 2012 and is headquartered in San Jose, CA.

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