Critical Analysis: Viavi Solutions (NASDAQ:VIAV) & Intchains Group (NASDAQ:ICG)

Viavi Solutions (NASDAQ:VIAV) and Intchains Group (NASDAQ:ICG) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility and Risk

Viavi Solutions has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Intchains Group has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Valuation & Earnings

This table compares Viavi Solutions and Intchains Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viavi Solutions	$1.00 billion	2.17	-$25.80 million	($0.17)	-57.64
Intchains Group	$11.58 million	21.22	-$3.78 million	$0.06	68.34

Intchains Group has lower revenue, but higher earnings than Viavi Solutions. Viavi Solutions is trading at a lower price-to-earnings ratio than Intchains Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Viavi Solutions and Intchains Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viavi Solutions	0	5	2	1	2.50
Intchains Group	0	0	1	0	3.00

Viavi Solutions currently has a consensus target price of $10.42, suggesting a potential upside of 6.29%. Intchains Group has a consensus target price of $11.00, suggesting a potential upside of 168.29%. Given Intchains Group’s stronger consensus rating and higher possible upside, analysts clearly believe Intchains Group is more favorable than Viavi Solutions.

Profitability

This table compares Viavi Solutions and Intchains Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viavi Solutions	-3.78%	2.22%	0.88%
Intchains Group	12.96%	2.57%	2.47%

Institutional and Insider Ownership

95.5% of Viavi Solutions shares are held by institutional investors. 1.5% of Viavi Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Intchains Group beats Viavi Solutions on 9 of the 15 factors compared between the two stocks.

About Viavi Solutions

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions for communications service providers, hyperscalers, network equipment manufacturers, original equipment manufacturers, government, and avionics customers in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks. Its solutions include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and test and measurement instrumentation for communication and safety. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The OSP segment offers optical products for anti-counterfeiting, consumer and industrial, government, automotive, and industrial markets. The company was formerly known as JDS Uniphase Corporation. Viavi Solutions Inc. was founded in 1923 and is headquartered in Chandler, Arizona.

About Intchains Group

Intchains Group Limited designs and sells application-specific integrated circuit chips for blockchain applications in the People's Republic of China. The company also offers ancillary software, hardware, and other products. It serves distributors. Intchains Group Limited was founded in 2017 and is based in Pudong, China.