Critical Survey: Verizon Communications (NYSE:VZ) vs. Proxim Wireless (OTCMKTS:PRXM)

Verizon Communications (NYSE:VZ) and Proxim Wireless (OTCMKTS:PRXM) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares Verizon Communications and Proxim Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verizon Communications	13.28%	19.61%	5.19%
Proxim Wireless	N/A	N/A	N/A

Risk and Volatility

Verizon Communications has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Proxim Wireless has a beta of 19.97, meaning that its share price is 1,897% more volatile than the S&P 500.

Earnings and Valuation

This table compares Verizon Communications and Proxim Wireless”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verizon Communications	$134.79 billion	1.37	$17.51 billion	$4.29	10.24
Proxim Wireless	N/A	N/A	N/A	N/A	N/A

Verizon Communications has higher revenue and earnings than Proxim Wireless.

Institutional & Insider Ownership

62.1% of Verizon Communications shares are held by institutional investors. 0.1% of Verizon Communications shares are held by insiders. Comparatively, 3.6% of Proxim Wireless shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Verizon Communications and Proxim Wireless, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verizon Communications	0	11	5	3	2.58
Proxim Wireless	0	0	0	0	0.00

Verizon Communications presently has a consensus target price of $47.53, indicating a potential upside of 8.15%. Given Verizon Communications’ stronger consensus rating and higher probable upside, equities analysts plainly believe Verizon Communications is more favorable than Proxim Wireless.

Summary

Verizon Communications beats Proxim Wireless on 9 of the 11 factors compared between the two stocks.

About Verizon Communications

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smart watches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

About Proxim Wireless

Proxim Wireless Corporation provides Wi-Fi, point-to-point, and point-to-multipoint 4G wireless network technologies for wireless Internet, video surveillance, and backhaul applications. It offers wireless broadband and backhaul products, wireless LAN access products, and network controllers. The company's products have applications in transportation, video surveillance, mobility, Wi-Fi offload, backhaul, wireless broadband/ISP, government, carrier Wi-Fi, retail Wi-Fi, and enterprises WLAN. Its broadband wireless equipment is used by enterprises, service providers, carriers, government entities, educational institutions, healthcare organizations, municipalities and other organizations that need high-performance, secure, and scalable broadband wireless solutions. The company serves customers through online retailers, a network of distributors, value-added resellers, system integrators, and original equipment manufacturers in North America, Africa, the Asia Pacific, Europe, Latin America, and the Middle East. The company was founded in 1982 and is headquartered in San Jose, California. As of July 31, 2018, Proxim Wireless Corporation operates as a subsidiary of SRA Holdings, Inc.