Xilinx (NASDAQ:XLNX) and Finisar (FNSR) Financial Review


Finisar (NASDAQ:FNSR) and Xilinx (NASDAQ:XLNX) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

93.4% of Finisar shares are owned by institutional investors. Comparatively, 88.3% of Xilinx shares are owned by institutional investors. 1.1% of Finisar shares are owned by company insiders. Comparatively, 0.2% of Xilinx shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Xilinx pays an annual dividend of $1.48 per share and has a dividend yield of 1.4%. Finisar does not pay a dividend. Xilinx pays out 42.5% of its earnings in the form of a dividend. Xilinx has raised its dividend for 8 consecutive years.

Profitability

This table compares Finisar and Xilinx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Finisar -4.48% 2.56% 1.63%
Xilinx 29.09% 34.72% 17.20%

Valuation & Earnings

This table compares Finisar and Xilinx’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Finisar $1.32 billion 1.93 -$48.28 million $0.32 67.38
Xilinx $3.06 billion 8.70 $889.75 million $3.48 30.10

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

Volatility and Risk

Finisar has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Xilinx has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Finisar and Xilinx, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finisar 0 12 2 0 2.14
Xilinx 1 11 12 0 2.46

Finisar presently has a consensus target price of $25.40, suggesting a potential upside of 17.81%. Xilinx has a consensus target price of $114.18, suggesting a potential upside of 8.99%. Given Finisar’s higher probable upside, analysts plainly believe Finisar is more favorable than Xilinx.

Summary

Xilinx beats Finisar on 11 of the 17 factors compared between the two stocks.

Finisar Company Profile

Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United States, China, Malaysia, and internationally. The company’s optical subsystems primarily include transmitters, receivers, transceivers, transponders, and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in wireline networks comprising switches, routers, and servers, as well as wireless networks, such as antennas and base stations. It also offers wavelength selective switches that are used to switch network traffic from one optical fiber to various other fibers without converting to an electronic signal. In addition, the company provides packaged laser, receivers, and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. It markets its products through direct sales force, as well as distributors, manufacturers’ representatives and resellers, and system integrators; and to the manufacturers of storage systems and telecommunication equipment, as well as to their contract manufacturers. Finisar Corporation was founded in 1987 and is headquartered in Sunnyvale, California.

Xilinx Company Profile

Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; adaptive compute acceleration platform; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken, and peripheral component interconnect express interfaces, as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity, and market-specific IP cores. The company also offers development boards; development kits, including hardware, design tools, IP, and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays. In addition, it provides design, customer training, field engineering, and technical support services. The company offers its products to electronic equipment manufacturers in sub-segments, such as wireline and data center, wireless, aerospace and defense, test and measurement, industrial, scientific and medical, automotive, audio, video and broadcast, and consumer. Xilinx, Inc. sells its products through a network of independent distributors; and through direct sales to original equipment manufacturers and electronic manufacturing service providers, as well as independent sales representatives. The company has a strategic collaboration with ZF Friedrichshafen AG; and technology collaboration with Shenzhen Youjia Innovation Technology Co., Ltd. Xilinx, Inc. was founded in 1984 and is headquartered in San Jose, California.



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