Reviewing Cistera Networks (OTCMKTS:CNWT) and Lantronix (NASDAQ:LTRX)

Cistera Networks (OTCMKTS:CNWT) and Lantronix (NASDAQ:LTRX) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Cistera Networks and Lantronix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cistera Networks	N/A	N/A	N/A
Lantronix	-5.84%	-7.03%	-4.14%

Institutional and Insider Ownership

39.4% of Lantronix shares are held by institutional investors. 1.6% of Lantronix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cistera Networks and Lantronix”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cistera Networks	N/A	N/A	N/A	N/A	N/A
Lantronix	$160.33 million	0.72	-$4.52 million	($0.22)	-13.41

Cistera Networks has higher earnings, but lower revenue than Lantronix.

Analyst Ratings

This is a summary of recent recommendations for Cistera Networks and Lantronix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cistera Networks	0	0	0	0	0.00
Lantronix	0	0	3	0	3.00

Lantronix has a consensus target price of $3.8333, suggesting a potential upside of 29.94%. Given Lantronix’s stronger consensus rating and higher probable upside, analysts clearly believe Lantronix is more favorable than Cistera Networks.

Summary

Lantronix beats Cistera Networks on 6 of the 9 factors compared between the two stocks.

About Cistera Networks

Cistera Networks, Inc. provides enterprise and small business communications solutions for the IT industry in the United States. The company’s convergence servers and software application solutions offer advanced voice, video, and data communications platforms and applications for quality assurance and management, event notification and alerting, recording and monitoring, and collaborative solutions. It also provides Cistera 1.9 software platform, a component-based architecture that enables enhanced scalability and management of advanced unified communications applications; and Quality Assurance and Management systems that allow organizations to respond to the needs of their customers and their partners, as well as enable organizations to build feedback loops by automating audit and compliance needs through recording and monitoring systems. In addition, the company offers Event Alerting and Notification solutions for the delivery of timely and actionable information for organizations of various sizes. Further, it provides support and maintenance, and professional services. The company was formerly known as CNH Holdings Company and changed its name to Cistera Networks Inc in September 2005. Cistera Networks, Inc. was founded in 1987 and is headquartered in Plano, Texas.

About Lantronix

Lantronix, Inc. provides solutions for video surveillance, infotainment systems, and intelligent substations infrastructure in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company's IoT products include IoT System Solutions, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, power for IoT end devices through Power over Ethernet, application hosting, protocol conversion, media conversion, secure access for distributed IoT deployments, and various other functions; Embedded IoT Modules, such as application processing delivering compute to meet customer needs for data transformation, computer vision, machine learning, augmented/virtual reality, audio/video aggregation and distribution, and custom applications; and Software and Engineering Services offers SaaS platform that enables customers to deploy, monitor, manage, and automate across their global deployments through a single platform login. It also offers telematics devices, which provides power efficient products designed to support communications across interfaces and industrial protocols for vehicle, fleet, and asset tracking and management; network switches, media converters, power over ethernet, NICS and optical SFPs, system on modules, and development kits; and services for mechanical, hardware, and software engineering for camera, audio, and artificial intelligence/machine learning development. In addition, the company provides console management, power management, and IP connected keyboard-video-mouse products that offers remote access to IT and networking infrastructure deployed in test labs, data centers, branch offices, remote sites, and server rooms; and hardware engineering, software engineering, and mechanical engineering, rapid prototyping and quality assurance engineering services. Lantronix, Inc. was incorporated in 1989 and is based in Irvine, California.