Harris (NYSE: HRS) and Riverbed Technology (NASDAQ:RVBD) are both mid-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
84.3% of Harris shares are held by institutional investors. 1.9% of Harris 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.
Harris has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Riverbed Technology has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.
Harris pays an annual dividend of $2.28 per share and has a dividend yield of 1.6%. Riverbed Technology does not pay a dividend. Harris pays out 42.6% of its earnings in the form of a dividend. Harris has increased its dividend for 16 consecutive years.
This is a breakdown of current ratings and recommmendations for Harris and Riverbed Technology, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Harris currently has a consensus target price of $144.17, indicating a potential downside of 1.00%. Given Harris’ higher probable upside, equities research analysts plainly believe Harris is more favorable than Riverbed Technology.
Earnings & Valuation
This table compares Harris and Riverbed Technology’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harris||$5.90 billion||2.94||$553.00 million||$5.35||27.22|
Harris has higher revenue and earnings than Riverbed Technology. Harris is trading at a lower price-to-earnings ratio than Riverbed Technology, indicating that it is currently the more affordable of the two stocks.
This table compares Harris and Riverbed Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Harris beats Riverbed Technology on 8 of the 14 factors compared between the two stocks.
Harris Corporation is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. It offers its products and services to government and commercial customer. It operates in four segments: Communication Systems, which serves markets in tactical communications and defense, and public safety networks; Space and Intelligence Systems, which provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems, which offers a portfolio of solutions in electronic warfare, avionics, wireless and technology, among others, and Critical Networks, which provides managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as information technology (IT) and engineering services.
About Riverbed Technology
Riverbed Technology, Inc. (Riverbed) is a provider of application performance infrastructure. The Company offers a platform to deliver, control and optimize IT resources across the hybrid enterprise. The Riverbed Application Performance Platform delivers application performance infrastructure solutions with a focus on two areas, which include application acceleration and performance management. The Wide area network (WAN) optimization for application acceleration includes Riverbed SteelHead, which provides WAN optimization solution, and Riverbed SteelFusion, which provides branch converged infrastructure. The Company’s application acceleration solutions also include Riverbed SteelApp, an application delivery controller (ADC). The Company’s performance management solution includes Riverbed SteelCentral, a performance management suite that combines its application-aware network performance management and application performance management control suite.
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