Ciena (CIEN) and MER Telemanagement Solutions (MTSL) Head to Head Analysis

Ciena (NYSE:CIEN) and MER Telemanagement Solutions (NASDAQ:MTSL) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Ciena and MER Telemanagement Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ciena 1 7 14 0 2.59
MER Telemanagement Solutions 0 0 0 0 N/A

Ciena presently has a consensus target price of $32.64, indicating a potential downside of 5.40%. Given Ciena’s higher possible upside, equities analysts plainly believe Ciena is more favorable than MER Telemanagement Solutions.

Profitability

This table compares Ciena and MER Telemanagement Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ciena 25.56% 8.56% 4.36%
MER Telemanagement Solutions N/A N/A N/A

Volatility & Risk

Ciena has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, MER Telemanagement Solutions has a beta of 3.03, suggesting that its stock price is 203% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ciena and MER Telemanagement Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ciena $2.80 billion 1.76 $1.26 billion $1.49 23.15
MER Telemanagement Solutions $8.63 million 0.87 -$1.76 million N/A N/A

Ciena has higher revenue and earnings than MER Telemanagement Solutions.

Institutional & Insider Ownership

2.2% of MER Telemanagement Solutions shares are owned by institutional investors. 1.4% of Ciena shares are owned by company insiders. Comparatively, 59.1% of MER Telemanagement Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Ciena beats MER Telemanagement Solutions on 8 of the 11 factors compared between the two stocks.

About Ciena

Ciena Corporation provides hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide. The company's Networking Platforms segment offers hardware networking solutions optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching. Its products include 6500 Packet-Optical Platform and the 5430 Reconfigurable Switching System, Waveserver stackable interconnect system, CoreDirector Multiservice Optical Switches, and OTN configuration for the 5410 Reconfigurable Switching System, as well as Z-Series Packet-Optical Platform; 3000 family of service delivery switches and service aggregation switches, and the 5000 family of service aggregation switches, as well as 8700 Packetwave Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch; and 4200 Advanced Services Platform, 5100/5200 Advanced Services Platform, Common Photonic Layer, and 6100 Multiservice Optical Platform. This segment also sells operating system software and enhanced software features embedded in each of its products. The company's Software and Software-Related Services segment offers network management solutions, including the OneControl Unified Management System, ON-Center Network & Service Management Suite, Ethernet Services Manager, Optical Suite Release, and Planet Operate; and Blue Planet network virtualization, service orchestration, and network management software platform, as well as related installation, support, and consulting services. Its Global Services segment provides consulting and network design, installation and deployment, maintenance support, and training services. The company sells its products through direct and indirect sales channels to network operators. Ciena Corporation was founded in 1992 and is headquartered in Hanover, Maryland.

About MER Telemanagement Solutions

MER Telemanagement Solutions Ltd. provides solutions for telecommunications expense management (TEM), enterprise mobility management, and online and mobile video advertising worldwide. The company operates in three segments: Enterprise, Service Providers, and Video Advertising. It offers TEM suite software platform that helps organizations to reduce operational expenses, enhance productivity, and optimize networks and services associated with communications networks and information technology (IT). The company also provides TEM services, such as Map-to-Wins, a strategic consulting approach for TEM solution; and consulting services, including invoice and inventory audit and recovery, contract negotiations and strategic sourcing, discovery and road mapping, process diagnosis and solution design, and wireless optimization services, as well as creation and implementation of IT governance, risk, and compliance policies. In addition, the company offers converged billing solutions that include applications for charging and invoicing customers, interconnect billing, and partner revenue management services for wireless providers, voice over Internet protocol, Internet protocol television, mobile virtual network operators, and content service providers. Further, it provides cloud and managed services; and digital video advertising solutions for large and small brand advertisers, advertising agencies, and other businesses. The company sells its solutions through original equipment manufacturers, distribution channels, and direct sales force. MER Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Ra'anana, Israel.

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