Analyzing ARRIS International (ARRS) & Pointer Telocation (PNTR)

ARRIS International (NASDAQ:ARRS) and Pointer Telocation (NASDAQ:PNTR) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Risk & Volatility

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.

Insider & Institutional Ownership

87.2% of ARRIS International shares are held by institutional investors. Comparatively, 20.1% of Pointer Telocation shares are held by institutional investors. 1.0% of ARRIS International shares are held by insiders. Comparatively, 1.0% of Pointer Telocation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares ARRIS International and Pointer Telocation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARRIS International $6.61 billion 0.83 $92.02 million $2.43 12.99
Pointer Telocation $78.15 million 1.39 $16.51 million $1.12 11.93

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.

Profitability

This table compares ARRIS International and Pointer Telocation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARRIS International 1.24% 16.14% 6.77%
Pointer Telocation 21.23% 13.81% 9.62%

Analyst Recommendations

This is a summary of current recommendations and price targets for ARRIS International and Pointer Telocation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARRIS International 0 8 1 0 2.11
Pointer Telocation 0 0 2 0 3.00

ARRIS International currently has a consensus price target of $29.37, suggesting a potential downside of 6.96%. Pointer Telocation has a consensus price target of $21.00, suggesting a potential upside of 57.19%. Given Pointer Telocation’s stronger consensus rating and higher probable upside, analysts clearly believe Pointer Telocation is more favorable than ARRIS International.

Summary

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.

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