Analyzing Aerohive Networks (HIVE) & CSP (CSPI)

Aerohive Networks (NYSE:HIVE) and CSP (NASDAQ:CSPI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Risk & Volatility

Aerohive Networks has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, CSP has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Dividends

CSP pays an annual dividend of $0.60 per share and has a dividend yield of 5.0%. Aerohive Networks does not pay a dividend. CSP has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Aerohive Networks and CSP, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 0 0 2.00
CSP 0 0 0 0 N/A

Aerohive Networks presently has a consensus target price of $4.50, suggesting a potential upside of 19.05%. Given Aerohive Networks’ higher possible upside, equities research analysts clearly believe Aerohive Networks is more favorable than CSP.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $152.90 million 1.37 -$22.92 million ($0.41) -9.22
CSP $111.48 million 0.43 $2.50 million N/A N/A

CSP has lower revenue, but higher earnings than Aerohive Networks.

Institutional & Insider Ownership

47.2% of Aerohive Networks shares are owned by institutional investors. Comparatively, 26.4% of CSP shares are owned by institutional investors. 26.1% of Aerohive Networks shares are owned by insiders. Comparatively, 10.2% of CSP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Aerohive Networks -10.39% -74.73% -11.57%
CSP -0.43% 5.89% 1.95%

Summary

CSP beats Aerohive Networks on 7 of the 12 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. The company provides hardware products, such as wireless access points, branch routers, and switches; tiered maintenance and support services comprising technical support, bug fixes, access to priority hardware replacement service, and unspecified upgrades; and Software as a Service subscriptions, including comparable maintenance and support services. Its cloud-based product comprises HiveManager NG, a network management application that features an updated user, improved troubleshooting, and expanded access to data and analytics, as well as an upgraded cloud-deployment platform. The company sells its products to industry verticals, including education, distributed enterprises, retail, healthcare, and healthcare through a network of authorized value-added resellers, value-added distributors, and managed service providers. Aerohive Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.

About CSP

CSP Inc. develops and markets IT integration solutions, security and managed services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. The company's High Performance Products segment offers computing systems for digital signal processing applications in the defense market; Ethernet adapters and solutions for various applications in the packet capture, financial transaction, and storage interconnect markets; ARC Series adapters for automated trading and network monitoring; and nVoy Series products comprising 100G Packet Broker and 10G Packet Recorder, and specialized software under the Myricom brand. Its Technology Solutions segment provides third-party computer hardware and software as a value added reseller to various customers in Web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as implementation, integration, migration, configuration, installation, and project management; unified storage platforms; virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; maintenance and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT Infrastructure, collaboration and resale, security, and backup and replication. CSP Inc. was founded in 1968 and is headquartered in Lowell, Massachusetts.

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