Analyzing ARRIS International (ARRS) & Nokia Oyj (NOK)

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

Institutional and Insider Ownership

87.3% of ARRIS International shares are held by institutional investors. Comparatively, 6.8% of Nokia Oyj shares are held by institutional investors. 1.0% of ARRIS International 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ARRIS International and Nokia Oyj, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARRIS International 1 3 3 0 2.29
Nokia Oyj 3 5 6 0 2.21

ARRIS International currently has a consensus price target of $29.29, indicating a potential upside of 27.16%. Nokia Oyj has a consensus price target of $5.72, indicating a potential upside of 3.03%. Given ARRIS International’s stronger consensus rating and higher probable upside, research analysts clearly believe ARRIS International is more favorable than Nokia Oyj.

Profitability

This table compares ARRIS International and Nokia Oyj’s 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%
Nokia Oyj -4.56% 9.10% 3.64%

Dividends

Nokia Oyj pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. ARRIS International does not pay a dividend. Nokia Oyj pays out 54.1% of its earnings in the form of a dividend.

Volatility and Risk

ARRIS International has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Nokia Oyj has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Earnings and Valuation

This table compares ARRIS International and Nokia Oyj’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARRIS International $6.61 billion 0.63 $92.02 million $2.43 9.48
Nokia Oyj $26.15 billion 1.20 -$1.69 billion $0.37 15.00

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

Summary

ARRIS International beats Nokia Oyj on 11 of the 16 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 Nokia Oyj

Nokia Corporation engages in the network and technology businesses worldwide. The company operates through four segments: Ultra Broadband Networks, Global Services, IP Networks and Applications, and Nokia Technologies. It provides mobile networking solutions, including hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals. It also offers fixed networking solutions, such as copper based solutions; fiber-to-the-home solutions, including Ethernet point-to-point, gigabit passive optical networks, EPON, and 10 gigabit next generation fiber technologies; fiber access products, solutions, and services; and public switched telephone network transformation, ultra-broadband network design, deployment and operation, site implementation and outside plant, and multi-vendor maintenance services. In addition, the company provides network implementation, care, and professional services for mobile networks; and managed services, such as network and service management, build-operate-transfer model, hosting, analytics, Internet of Things (IoT), cloud, and security operation services for the fixed, mobile, applications, Internet protocol (IP), and optical domains. Further, it offers network planning and optimization services to enhance the network performance and quality, and analytics-based services; and network architecture, integration, customization, and migration services. Additionally, the company provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, IoT, security, and analytics platforms; and submarine networks and radio frequency systems. Nokia Corporation has a collaboration agreement with Filtronic. The company was founded in 1865 and is headquartered in Espoo, Finland.

Receive News & Ratings for ARRIS International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ARRIS International and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply