Analyzing Corning (GLW) and Aerohive Networks (HIVE)

Aerohive Networks (NYSE: HIVE) and Corning (NYSE:GLW) are both companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Volatility and Risk

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Aerohive Networks has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

46.8% of Aerohive Networks shares are owned by institutional investors. Comparatively, 72.9% of Corning shares are owned by institutional investors. 26.2% of Aerohive Networks shares are owned by company insiders. Comparatively, 0.5% of Corning shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Aerohive Networks and Corning, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 3 0 2.75
Corning 2 5 4 0 2.18

Aerohive Networks presently has a consensus target price of $6.13, indicating a potential upside of 51.61%. Corning has a consensus target price of $30.50, indicating a potential upside of 9.40%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts plainly believe Aerohive Networks is more favorable than Corning.

Valuation & Earnings

This table compares Aerohive Networks and Corning’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $152.90 million 1.43 -$22.92 million ($0.41) -9.85
Corning $10.12 billion 2.36 -$497.00 million $1.72 16.21

Aerohive Networks has higher earnings, but lower revenue than Corning. Aerohive Networks is trading at a lower price-to-earnings ratio than Corning, indicating that it is currently the more affordable of the two stocks.

Dividends

Corning pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Aerohive Networks does not pay a dividend. Corning pays out 41.9% of its earnings in the form of a dividend. Corning has increased its dividend for 7 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Aerohive Networks -14.99% -94.14% -16.08%
Corning -4.91% 11.63% 6.29%

Summary

Corning beats Aerohive Networks on 12 of the 17 factors compared between the two stocks.

Aerohive Networks Company Profile

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

Corning Company Profile

Corning Incorporated is engaged in manufacturing specialty glass and ceramics. Its segments include Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. The Display Technologies segment manufactures glass substrates for flat panel liquid crystal displays (LCDs). The Optical Communications segment manufactures carrier and enterprise network components for the telecommunications industry. The Environmental Technologies segment manufactures ceramic substrates and filters for automotive and diesel emission control applications. As of December 31, 2016, the Specialty Materials segment manufactured products, which provided more than 150 material formulations for glass, glass ceramics and fluoride crystals. The Life Sciences segment manufactures glass and plastic labware, equipment, media and reagents. The All Other segment consists of its Pharmaceutical Technologies business and non-LCD glass business, and among others.

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