Financial Comparison: NEC (NIPNF) and A10 Networks (ATEN)

NEC (OTCMKTS:NIPNF) and A10 Networks (NYSE:ATEN) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Earnings & Valuation

This table compares NEC and A10 Networks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NEC $25.69 billion 0.00 $412.83 million N/A N/A
A10 Networks $232.22 million 2.06 -$27.62 million ($0.22) -28.73

NEC has higher revenue and earnings than A10 Networks.

Profitability

This table compares NEC and A10 Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NEC 1.26% 3.50% 1.33%
A10 Networks -8.67% -12.11% -5.23%

Insider and Institutional Ownership

63.8% of A10 Networks shares are held by institutional investors. 28.9% of A10 Networks shares are held 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 Ratings

This is a summary of current recommendations and price targets for NEC and A10 Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NEC 0 0 0 0 N/A
A10 Networks 0 0 1 0 3.00

A10 Networks has a consensus target price of $6.06, suggesting a potential downside of 4.11%.

Summary

NEC beats A10 Networks on 5 of the 8 factors compared between the two stocks.

About NEC

NEC Corporation engages in the integration of information technology (IT) and network technologies worldwide. It operates in four segments: Public, Enterprise, Telecom Carrier, and System Platform. The company provides systems integration services, such as systems implementation and consulting; maintenance and support services; outsourcing/cloud services; and system equipment. It also provides network infrastructure products, including core network products, mobile phone base stations, submarine systems comprising submarine cable and ocean observation systems, optical transmission systems, routers/switches, and mobile backhaul products, as well as telecom operations and management solutions, and other services/solutions. In addition, the company provides hardware products, such as servers, mainframes, supercomputers, storage products, business PCs, tablet devices, POS, ATMs, control equipment, wireless LAN routers, displays, and projectors; and software products that consist of integrated operation management, application servers, and security and database software. Further, it offers enterprise network solutions that include IP telephony systems, WAN/wireless access equipment, and LAN products; data center infrastructure services; and safety products, which include biometric solutions comprising face recognition and fingerprint identification, surveillance products, Smart energy products, and lighting equipment. Additionally, the company engages in the provision of IT services for retail sector; and manufacturing co-creation program activities. It primarily serves governments, governmental agencies, local governments, public institutions, financial institutions, and other organizations, as well as telecom carriers. The company was formerly known as Nippon Electric Company, Limited and changed its name to NEC Corporation in April 1983. NEC Corporation was founded in 1899 and is headquartered in Tokyo, Japan.

About A10 Networks

A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, other Asia Pacific and EMEA countries, and internationally. The company offers Thunder application delivery controller (ADC) that provides advanced server load balancing; Lightning ADC, a cloud-native software-as-a-service platform to boost the delivery and security of applications and micro services; and Thunder carrier grade network address translation product, which offers network address and protocol translation services for service provider networks. It also provides Thunder threat protection system for the protection of networks and server resources against massive distributed denial of service attacks; Thunder secure sockets layer (SSL) insight solution that decrypts SSL-encrypted traffic and forwards it to a third-party security device, such as a firewall for deep packet inspection; and Thunder convergent firewall, which consolidates various critical security capabilities in one package by consolidating various security and networking functions in a single appliance. In addition, the company offers intelligent management and automation tools comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery in multi-cloud environment; and aGalaxy, a multi-device network management solution. The company delivers its solutions on optimized hardware appliances, bare metal software, virtual appliances, and cloud-native software. It serves cloud providers, Web-scale businesses, service providers, government organizations, and enterprises in the telecommunications, technology, industrial, government, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

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