Comparing Westell Technologies (OTCMKTS:WSTL) and Extreme Networks (NASDAQ:EXTR)

Extreme Networks (NASDAQ:EXTR) and Westell Technologies (OTCMKTS:WSTL) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

91.0% of Extreme Networks shares are held by institutional investors. Comparatively, 10.9% of Westell Technologies shares are held by institutional investors. 3.6% of Extreme Networks shares are held by insiders. Comparatively, 24.6% of Westell Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Extreme Networks and Westell Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.28 billion	2.34	$42.12 million	$0.31	74.26
Westell Technologies	$29.96 million	3.20	-$10.10 million	($0.56)	-10.83

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

Profitability

This table compares Extreme Networks and Westell Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	3.28%	88.88%	6.32%
Westell Technologies	-30.99%	-18.79%	-15.09%

Analyst Recommendations

This is a summary of current recommendations for Extreme Networks and Westell Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	1	1	7	0	2.67
Westell Technologies	0	0	0	0	0.00

Extreme Networks presently has a consensus price target of $32.25, indicating a potential upside of 40.10%. Given Extreme Networks’ stronger consensus rating and higher possible upside, research analysts clearly believe Extreme Networks is more favorable than Westell Technologies.

Risk & Volatility

Extreme Networks has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Westell Technologies has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Summary

Extreme Networks beats Westell Technologies on 12 of the 14 factors compared between the two stocks.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.

About Westell Technologies

Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States. The company operates through three segments: In-Building Wireless (IBW), Intelligent Site Management (ISM), and Communications Network Solutions (CNS). The IBW segment offers distributed antenna system conditioners; digital repeaters; battery backup units; and system components and antennas, including couplers, duplexers, splitters, filters, and tappers for commercial and public safety in-building wireless systems. The ISM segment provides a suite of remote units, which provide machine-to-machine communications that enable operators to remotely monitor, manage, and control site infrastructure and support systems. The CNS segment provides a range of indoor and outdoor network infrastructure, such as integrated cabinets, power distribution products, copper and fiber connectivity products, and T1 network interface units. The company serves wireless and wireline service providers, multiple systems operators, Internet service providers, systems integrators, neutral host operators, and distributors through field sales organization, distributors, and partners. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.