Reviewing AltiGen Communications (ATGN) & Avaya (AVYA)

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AltiGen Communications (OTCMKTS:ATGN) and Avaya (NYSE:AVYA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares AltiGen Communications and Avaya’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AltiGen Communications 96.62% 148.23% 102.20%
Avaya 2.08% 16.22% 4.02%

Analyst Ratings

This is a summary of recent ratings for AltiGen Communications and Avaya, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AltiGen Communications 0 0 0 0 N/A
Avaya 0 3 2 0 2.40

Avaya has a consensus price target of $21.30, indicating a potential upside of 16.01%. Given Avaya’s higher possible upside, analysts plainly believe Avaya is more favorable than AltiGen Communications.

Volatility & Risk

AltiGen Communications has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Avaya has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

99.1% of Avaya shares are owned by institutional investors. 14.0% of AltiGen Communications shares are owned by insiders. Comparatively, 0.7% of Avaya shares are owned by 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.

Valuation and Earnings

This table compares AltiGen Communications and Avaya’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AltiGen Communications $10.00 million 2.63 $9.84 million N/A N/A
Avaya $2.85 billion 0.71 $3.26 billion N/A N/A

Avaya has higher revenue and earnings than AltiGen Communications.

AltiGen Communications Company Profile

Altigen Communications, Inc. designs, delivers, and supports Voice over Internet Protocol (VoIP) phone systems and call center solutions worldwide. The company offers MaxCommunications Server (MaxCS) IP-PBX, a software-based phone system that provides customers with business communications solutions; MaxACD VoIP Contact Center, a software-based automatic call distribution engine, which offers call routing and call distribution options; MaxMobile that extends a set of business PBX functionality to smart phone devices; and MaxCommunicator, a Windows-based desktop application, which provides call control and visual voice mail management to the desktop. It also offers MaxAgent, a Windows-based desktop application to bring call control and workgroup information to call center agents; MaxSupervisor, a Windows-based desktop application for call center supervisors; and MaxACD for Lync, a call center solution. In addition, the company provides hosted services; and service support programs, which offer customers with updates, patches, new releases, and technical support for the applications they are licensed to use. It sells its products to small-to-medium sized and multi-site businesses, corporate branch offices, call centers, credit unions, and community banks through a channel of distributors and resellers. Altigen Communications, Inc. was founded in 1994 and is headquartered in San Jose, California.

Avaya Company Profile

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices. It also provides an open development platform for customers and third parties to create custom applications and automated workflows for their needs; and contact center solutions that enable customers to build a customized portfolio of applications driving customer engagement and customer value. This segments communications solutions include voice, email, chat, social media, video, and performance management. The Services segment provides global support services, enterprise cloud and managed services, and professional services. The company also delivers cloud business communications services and solutions to connect with customers. Avaya Holdings Corp. sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company is based in Santa Clara, California.

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