Viavi Solutions Inc. (VIAV) vs Viasat Inc. (VSAT)

Viavi Solutions Inc. and Viasat Inc. are both Communication Equipment companies. Viasat Inc. is the larger, with a market value of $8.2B against $6.5B — 1.3× the size. Viasat Inc. has negative trailing earnings, so its P/E is not meaningful; Viavi Solutions Inc. trades at 97.4×. Viavi Solutions Inc. grew revenue faster over the last twelve months: 47.4% against 1.35%. Viavi Solutions Inc. has the higher net margin (3.97% vs −0.64%) and the higher return on invested capital (5.69% vs 0.72%). Across the 20 metrics below, Viavi Solutions Inc. leads on 11 and Viasat Inc. on 9.

Valuation

Metric VIAV VSAT Communication Equipment median
P/E 97.44 n/m 29.86
P/S 3.84 1.78 1.68
P/B 4.90 1.75 1.72
Price to free cash flow 32.41 23.39 21.71
EV/EBITDA 40.22 9.02 14.04
EV/Sales 3.83 2.80 1.76
Earnings yield 1.03% (0.40%) (0.87%)
Free cash flow yield 3.09% 4.27% 0.68%

Profitability

Metric VIAV VSAT Communication Equipment median
Gross margin 58.85% 33.22% 39.34%
Operating margin 10.61% 2.35% 2.43%
Net margin 3.97% (0.64%) (0.64%)
Free cash flow margin 14.50% 12.50% 0.27%
Return on equity 6.54% (0.63%) 0.00%
Return on assets 2.87% (0.20%) (0.10%)
Return on invested capital 5.69% 0.72% 1.29%

Growth

Metric VIAV VSAT Communication Equipment median
Revenue growth (TTM) 47.44% 1.35% 9.66%
EPS growth (last fiscal year) (186.67%) 94.42% 31.29%
Revenue growth, 5-year CAGR 4.84% 19.29% 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric VIAV VSAT Communication Equipment median
Debt to equity 0.49 1.37 0.05
Current ratio 1.65 1.68 1.99
Net debt to EBITDA (0.07) 3.21 0.93

Dividend

Metric VIAV VSAT Communication Equipment median
Dividend yield — — 1.10%
Payout ratio — — 0.44

Size

Metric VIAV VSAT Communication Equipment median
Market cap 6.47b 8.18b 495.24m

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