Financial Review: Telenav (TNAV) versus Harris (HRS)

Telenav (NASDAQ: TNAV) and Harris (NYSE:HRS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

52.9% of Telenav shares are held by institutional investors. Comparatively, 85.2% of Harris shares are held by institutional investors. 24.7% of Telenav shares are held by company insiders. Comparatively, 1.9% of Harris shares are held by company 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.

Volatility and Risk

Telenav has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Harris has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares Telenav and Harris’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telenav -58.01% -83.65% -25.82%
Harris 10.43% 25.07% 7.53%

Earnings & Valuation

This table compares Telenav and Harris’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telenav $169.58 million 1.41 -$47.26 million ($1.09) -4.91
Harris $5.90 billion 3.10 $553.00 million $5.53 27.83

Harris has higher revenue and earnings than Telenav. Telenav is trading at a lower price-to-earnings ratio than Harris, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Telenav and Harris, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telenav 0 0 3 0 3.00
Harris 0 1 7 0 2.88

Telenav currently has a consensus target price of $11.17, indicating a potential upside of 108.72%. Harris has a consensus target price of $170.13, indicating a potential upside of 10.54%. Given Telenav’s stronger consensus rating and higher possible upside, analysts plainly believe Telenav is more favorable than Harris.

Dividends

Harris pays an annual dividend of $2.28 per share and has a dividend yield of 1.5%. Telenav does not pay a dividend. Harris pays out 41.2% of its earnings in the form of a dividend. Harris has increased its dividend for 16 consecutive years.

Summary

Harris beats Telenav on 13 of the 17 factors compared between the two stocks.

About Telenav

Telenav, Inc., together with its subsidiaries provides connected car and location-based platform services in the United States and internationally. The company operates through three segments: Automotive, Advertising, and Mobile Navigation. It offers automotive navigation services, including on-board solutions, which consist of software, map, and points of interest data loaded in vehicles that provide voice-guided turn by turn navigation displayed on the vehicle screen; and mobile phone-based wireless connectivity and brought-in navigation services. The company also provides display and location-based advertising services; and voice-guided, real-time, turn by turn, and mobile navigation services under various brand names, including Scout GPS Navigation, as well as under wireless carrier brands. Its customers include wireless carriers, automobile manufacturers, original equipment manufacturers, advertisers, advertising agencies, and end users. The company distributes its services primarily through wireless carrier partners. Telenav, Inc. is headquartered in Santa Clara, California.

About Harris

Harris Corporation provides technology-based solutions that solve government and commercial customers' mission-critical challenges in the United States and internationally. The company operates in three segments: Communication Systems, Electronic Systems, and Space and Intelligence Systems. It designs, develops, and manufactures radio communications products and systems, including single channel ground and airborne radio systems, 2-channel vehicular radio systems, multiband manpack and handheld radios, multi-channel manpack and airborne radios, and single-channel airborne radios, as well as wideband rifleman team, ground, and high frequency manpack radios. The company also offers secure communications systems and equipment, including Internet protocol based voice and data communications systems, as well as single-band land mobile radio terminals and multiband radios comprising a handheld radio and a full-spectrum mobile radio for vehicles. In addition, it provides earth observation, environmental, exploration, geospatial, space protection, and intelligence solutions, such as sensors and payloads, as well as ground processing and information analytics for security, defense, civil, and commercial customers; and positioning, navigation, and timing products, systems, and solutions. Further, the company offers electronic warfare, avionics, surveillance and reconnaissance, command, control, communications, computers and intelligence, and undersea systems and solutions for aviation, defense, and maritime applications. Additionally, it provides managed services that support air traffic management; engineering support and sustainment for ground-based systems; and information technology and engineering managed services to government and commercial customers. The company was founded in 1895 and is headquartered in Melbourne, Florida.

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