ARRIS International (NASDAQ:ARRS) and Pointer Telocation (NASDAQ:PNTR) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
This is a breakdown of recent ratings and target prices for ARRIS International and Pointer Telocation, as provided by MarketBeat.com.
ARRIS International currently has a consensus price target of $29.37, suggesting a potential downside of 7.05%. Pointer Telocation has a consensus price target of $21.00, suggesting a potential upside of 62.16%. Given Pointer Telocation’s stronger consensus rating and higher probable upside, analysts plainly believe Pointer Telocation is more favorable than ARRIS International.
Insider and Institutional Ownership
88.3% of ARRIS International shares are owned by institutional investors. Comparatively, 20.2% of Pointer Telocation shares are owned by institutional investors. 1.0% of ARRIS International shares are owned by insiders. Comparatively, 1.0% of Pointer Telocation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares ARRIS International and Pointer Telocation’s net margins, return on equity and return on assets.
Earnings & Valuation
This table compares ARRIS International and Pointer Telocation’s top-line revenue, earnings per share and valuation.
ARRIS International has higher revenue and earnings than Pointer Telocation. Pointer Telocation is trading at a lower price-to-earnings ratio than ARRIS International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ARRIS International has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Pointer Telocation has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.
ARRIS International beats Pointer Telocation on 7 of the 13 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 Pointer Telocation
Pointer Telocation Ltd. provides mobile resource management (MRM) products and services for the automotive and insurance industries, and mobile assets management markets worldwide. It operates through MRM and Cellocator sgments. The MRM segment offers asset management, fleet management, stolen vehicle retrieval (SVR), and connected car services. The Cellocator segment designs, develops, and manufactures MRM products, such as fleet management products, including remote monitoring and control solutions comprising command and control center, and communications infrastructure; asset management products; and SVR products. The company was formerly known as Nexus Telocation Systems Ltd. and changed its name to Pointer Telocation Ltd. in January 2006. Pointer Telocation Ltd. was founded in 1991 and is headquartered in Rosh Haayin, Israel.