Critical Comparison: Vecima Networks (OTCMKTS:VNWTF) and Evertz Technologies (OTCMKTS:EVTZF)

Vecima Networks (OTCMKTS:VNWTF) and Evertz Technologies (OTCMKTS:EVTZF) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Vecima Networks and Evertz Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vecima Networks	0	0	0	0	0.00
Evertz Technologies	0	0	1	0	3.00

Evertz Technologies has a consensus target price of $19.50, suggesting a potential upside of 124.65%. Given Evertz Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Evertz Technologies is more favorable than Vecima Networks.

Insider & Institutional Ownership

0.3% of Vecima Networks shares are owned by institutional investors. Comparatively, 6.2% of Evertz Technologies shares are owned by institutional investors. 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vecima Networks	N/A	N/A	N/A	$1.04	15.96
Evertz Technologies	N/A	N/A	N/A	$0.93	9.34

Evertz Technologies is trading at a lower price-to-earnings ratio than Vecima Networks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vecima Networks and Evertz Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vecima Networks	N/A	N/A	N/A
Evertz Technologies	N/A	N/A	N/A

Dividends

Vecima Networks pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Evertz Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 5.5%. Vecima Networks pays out 4.3% of its earnings in the form of a dividend. Evertz Technologies pays out 51.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Evertz Technologies beats Vecima Networks on 5 of the 8 factors compared between the two stocks.

About Vecima Networks

Vecima Networks Inc. engages in the development of integrated hardware and software solutions for broadband access, content delivery, and telematics. The company operates through three segments: Video and Broadband Solutions, Content Delivery and Storage, and Telematics. The Video and Broadband Solutions segment offers platforms that process data from the cable network and deliver high-speed internet connectivity to homes over cable and fiber, as well as adapt video services. Its principal products include Terrace and TerraceQAM, which are designed to meet the needs of the business services verticals, such as multi- dwelling unit, hotels, motels, and resorts; and Entra distributed access architecture platform comprising EntraPHY, EntraMAC, EntraOptical, EntraControl, and EntraVideo that addresses the network migration to a distributed access architecture. The Content Delivery and Storage segment offers solutions and software for service providers and content owners that focus on ingesting, producing, storing, delivering, and streaming video for live linear, video on demand, network digital video recorder, and time-shifted services over the internet under the MediaScale brand. The Telematics segment provides information and analytics for fleet managers to manage their mobile and fixed assets under the Contigo and Nero Global Tracking brands. The company also offers optical access nodes, Terrace QAM, Terrace TC600E, Terrace IQ, Entra FPXT-B, Enra access code, Entra access controller, Entra access switch, Entra Remote PHY Monitor, Entra Video QAM Manager, MediaScale Origin, MediaScale storage, and MediaScale transcode. In addition, it provides engineering and consultation services; lifecycle program management; installation and commission; training and certification; workforce optimization; and operations and customer support services. The company was incorporated in 1988 and is headquartered in Victoria, Canada. Vecima Networks Inc. is a subsidiary of 684739 B.C. Ltd.

About Evertz Technologies

Evertz Technologies Limited engages in the design, manufacture, and distribution of video and audio infrastructure solutions for the production, post-production, broadcast, and telecommunications markets in Canada, the United States, and internationally. The company offers contribution and distribution encoder, decoder, receiver, and processing products; and control panels, intelligent operations and controls, big data analytics, and network management systems, as well as orchestration, monitoring, and analytics solutions. It also provides video encoders, decoders, and multiplexing products comprising encoders/transcoders, decoders, multiplexers, monitoring and auto-changeover products, and enterprise products; optical media transport products; and audio consoles and processing products, such as mixing consoles, routing and I/O products, summing and processing products, and IP audio gateways. In addition, the company offers asset management and playout products, consisting of asset management, ingest, playout and branding, and transcoding/conforming products; live media production products; routers; flexible media edge products; and IP audio/video processing, media gateway, switch routing, timing, and software defined network orchestration products. Further, it provides multiviewers solutions comprising IP and SDI multiviewers, MVP, and accessories; Radio Frequency (RF) products; timing and synchronization products; and infrastructure and conversion products. The company serves content creators, broadcasters, specialty channels, and television service providers. Evertz Technologies Limited was founded in 1966 and is headquartered in Burlington, Canada.