AAP (OTCMKTS:AAPJ) and Infinera (NASDAQ:INFN) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Institutional & Insider Ownership
88.8% of Infinera shares are owned by institutional investors. 4.5% of AAP shares are owned by company insiders. Comparatively, 2.8% of Infinera shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for AAP and Infinera, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Infinera has a consensus target price of $8.08, suggesting a potential upside of 31.76%. Given Infinera’s higher probable upside, analysts clearly believe Infinera is more favorable than AAP.
Risk and Volatility
AAP has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Infinera has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
This table compares AAP and Infinera’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares AAP and Infinera’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Infinera||$1.30 billion||0.88||-$386.62 million||($0.83)||-7.39|
AAP has higher earnings, but lower revenue than Infinera.
Infinera beats AAP on 6 of the 10 factors compared between the two stocks.
AAP, Inc. provides power, comfort, and control systems for motor coaches, trucks, specialty vehicles, trailers, and other applications worldwide. The company offers air conditioning/heating systems, HVAC accessories, inverters and battery chargers, air purifiers, sound attenuating foams, refrigerators/freezers, icemakers, coolers, automatic computerized voltage disconnect systems, DC electrical systems, electrical start assist devices, and power transfer switches. It serves communication, medical, fire, rescue, race car transporter, recreational vehicle, trucking, and luxury motor coach and special purpose vehicle industries. The company offers its products under the AAP Inc., Dometic, and Vitrifrigo America brands. The company was formerly known as Borneo Energy USA, Inc. and changed its name to AAP, Inc. in September 2011. AAP, Inc. was founded in 1980 and is based in Milford, Virginia.
Infinera Corporation provides optical transport networking equipment and software and services worldwide. The company's product portfolio consists of Infinera DTN-X Family of terabit-class transport network platforms, including the XTC Series, XTS Series, and XT Series; Infinera DTN-X XTC series multi-terabit packet optical transport platforms that integrate digital OTN switching and optical WDM transmission; and Infinera DTN-X XT series for terrestrial applications and XTS series for subsea applications. It also provides Infinera hiT 7300, mTera Series, 7100 Series, 7090 Family, and 8600 Series; Infinera XTM Series packet-optical transport platform that enables high-performance metro networks with service-aware, application-specific capabilities; Infinera Groove G30; and Infinera Cloud Xpress Family designed to meet the varying needs of ICPs, communication service providers, Internet exchange service providers, enterprises, and other large-scale data center operators. In addition, the company offers Infinera FlexILS open line system platform that connects various Infinera and third-party terminal equipment platforms over long-distance fiber optic cable providing switching, multiplexing, amplification, and management channels. Further, it provides transcend software suite; Infinera CNOS, a hardware-independent network operating system; and a range of support services for all hardware and software products. The company also serves telecommunications service providers, Internet content providers, cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers, and government entities. It markets and sells its products and related support services primarily through its direct sales force. The company was formerly known as Zepton Networks. Infinera Corporation was founded in 2000 and is headquartered in Sunnyvale, California.
Receive News & Ratings for AAP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AAP and related companies with MarketBeat.com's FREE daily email newsletter.