Analyzing Harmonic (NASDAQ:HLIT) & Andrea Electronics (ANDR)

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Andrea Electronics (OTCMKTS:ANDR) and Harmonic (NASDAQ:HLIT) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Institutional and Insider Ownership

0.0% of Andrea Electronics shares are owned by institutional investors. Comparatively, 86.7% of Harmonic shares are owned by institutional investors. 16.2% of Andrea Electronics shares are owned by company insiders. Comparatively, 6.2% of Harmonic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Andrea Electronics and Harmonic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Andrea Electronics -82.99% 2,327.70% -65.75%
Harmonic -9.26% -5.97% -2.60%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Andrea Electronics and Harmonic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Andrea Electronics 0 0 0 0 N/A
Harmonic 0 1 2 0 2.67

Harmonic has a consensus price target of $7.63, suggesting a potential upside of 57.54%. Given Harmonic’s higher probable upside, analysts plainly believe Harmonic is more favorable than Andrea Electronics.

Risk and Volatility

Andrea Electronics has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Harmonic has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Valuation & Earnings

This table compares Andrea Electronics and Harmonic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Andrea Electronics $6.94 million 0.53 -$1.15 million N/A N/A
Harmonic $358.25 million 1.17 -$82.95 million ($0.54) -8.96

Andrea Electronics has higher earnings, but lower revenue than Harmonic.

Summary

Harmonic beats Andrea Electronics on 7 of the 11 factors compared between the two stocks.

Andrea Electronics Company Profile

Andrea Electronics Corporation designs, develops, and manufactures microphone technologies and products for enhancing speech-based applications software and communications primarily in the computer and business enterprise markets in the United States and internationally. It designs and markets digital signal processing (DSP) microphone and audio software. The company's DSP microphone and audio noise reduction software products include DA-350 auto array microphone for far-field voice intelligibility and accuracy of automatic speech recognition in high noise environments; DA-250 OEM array microphone, a small compact stereo array microphone and DSP circuit board platform; USB-SA array microphone, which offers a USB digital audio adapter to bypass a computer's standard integrated sound system; PureAudio VST3 plug-in, a noise reduction and center channel focus VST3 plug-in for audio/video editing post-processing; AudioCommander, a PC audio control panel; audio software for Mac that offers an intuitive graphic user interface to control stereo array microphone beam forming and noise cancellation on the input and EQ filters; PureAudio live recorder, a digital voice and audio recording application; and PureAudio pro recorder, which provides bookmarks for navigation of recordings. Its products are used in various applications, including mass transit and automotive communication systems, automated teller machines, information kiosks, home automation products, Internet of things digital assistants, TV set top boxes, audio and video recordings, robotics, and video surveillance. The company markets and sells its products through sales representatives and organizations to computer original equipment manufacturers, distributors of personal computers and communications equipment, software publishers, and industrial system integrators. Andrea Electronics Corporation was founded in 1934 and is headquartered in Bohemia, New York.

Harmonic Company Profile

Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide. Its products enable customers to create, prepare, and deliver a range of video and broadband services to consumer devices, including televisions, personal computers, laptops, tablets, and smart phones. The company operates in two segments, Video and Cable Edge. The Video segment sells video processing, and production and playout solutions and services to cable operators, and satellite and telecommunications Pay-TV service providers, as well as to broadcast and media companies, including streaming new media companies. This segment's video processing solutions include network management and application software, and hardware products, such as cloud media processing, broadcast and distribution encoders, contribution encoders, multiscreen transcoders and stream processing systems, multiscreen delivery, decoders and descramblers, and video servers. This segment also provides video-optimized storage systems; and unified video playout and processing software-as-a-service solutions. The Cable Edge segment offers cable edge solutions and related services, including CableOS software-based converged cable access platform solutions; and narrowcast services gateway products primarily to cable operators. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, program management, technical design and planning, building and site preparation, integration and equipment installation, system testing, and training. Harmonic Inc. sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was founded in 1988 and is headquartered in San Jose, California.

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