Contrasting Optical Cable (NASDAQ:OCC) & Aviat Networks (NASDAQ:AVNW)

Aviat Networks (NASDAQ:AVNW) and Optical Cable (NASDAQ:OCC) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Earnings & Valuation

This table compares Aviat Networks and Optical Cable”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aviat Networks	$434.61 million	0.62	$1.34 million	$0.69	30.19
Optical Cable	$73.04 million	1.67	-$1.46 million	$0.12	115.42

Aviat Networks has higher revenue and earnings than Optical Cable. Aviat Networks is trading at a lower price-to-earnings ratio than Optical Cable, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Aviat Networks has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Optical Cable has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Aviat Networks and Optical Cable, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aviat Networks	1	1	8	0	2.70
Optical Cable	1	0	0	0	1.00

Aviat Networks currently has a consensus price target of $33.14, suggesting a potential upside of 59.11%. Given Aviat Networks’ stronger consensus rating and higher probable upside, research analysts plainly believe Aviat Networks is more favorable than Optical Cable.

Insider & Institutional Ownership

78.6% of Aviat Networks shares are held by institutional investors. Comparatively, 13.6% of Optical Cable shares are held by institutional investors. 5.3% of Aviat Networks shares are held by company insiders. Comparatively, 22.4% of Optical Cable shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Aviat Networks and Optical Cable’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aviat Networks	2.08%	6.89%	2.89%
Optical Cable	1.29%	5.92%	2.50%

Summary

Aviat Networks beats Optical Cable on 11 of the 14 factors compared between the two stocks.

About Aviat Networks

Aviat Networks, Inc. provides microwave networking and wireless access networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers, switches, and trunking; and private LTE, virtual fiber, and element management products; and hosted software products, such as aviat design, frequency assurance software, and health assurance software. It also provides project services, which includes design and engineering, site and path surveys, assembly and integrations, project management, and install and commission; and managed services, such as network and interface monitoring, network health, onsite maintenance, and remote upgrades. In addition, the company offers support services, including extended warranty, warranty plus, provision support, and license key management, as well as instructor and virtual instructor led training, e-learning and certification services. It serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. company was incorporated in 2006 and is headquartered in Austin, Texas.

About Optical Cable

Optical Cable Corporation, together with its subsidiaries, engages in the manufacture and sale of fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company provides fiber optic and hybrid cables for high bandwidth transmission of data, video, and voice communications; and copper datacom cables, including unshielded and shielded twisted pair constructions. Its fiber optic connectivity products include fiber optic wall mounts, cabinet mount and rack mount enclosures, pre-terminated fiber optic enclosures, fiber optic connectors, splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories; and copper connectivity products comprising category compliant patch panels, jacks, plugs, patch cords, faceplates, surface mounted boxes, distribution and multi-media boxes, copper rack mount and wall mount enclosures, cable assemblies, cable organizers, and other wiring products for equipment rooms, telecommunications closets, data centers, and workstation applications. In addition, the company offers network, data storage, and telecommunications management systems, such as data cabinets, wall mount enclosures, horizontal and vertical cable management systems, and open frame relay racks; and datacom wiring products, including various enclosures, and modules and modular outlets for single dwelling and multiple dwelling residential uses. Further, it provides specialty fiber optic connectors and connectivity components, copper datacom connectors, and related systems and solutions for military, other harsh environment, and special applications, as well as cylindrical connector products. The company sells its products to distributors, original equipment manufacturers, value-added resellers, and end-users. Optical Cable Corporation was incorporated in 1983 and is headquartered in Roanoke, Virginia.