Extreme Networks Inc (EXTR)vsUbiquiti Networks Inc (UI)
EXTR
Extreme Networks Inc
$15.46
+2.05%
TECHNOLOGY · Cap: $2.08B
UI
Ubiquiti Networks Inc
$839.05
+0.55%
TECHNOLOGY · Cap: $50.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Ubiquiti Networks Inc generates 144% more annual revenue ($2.97B vs $1.22B). EXTR leads profitability with a 75.0% profit margin vs 29.9%. EXTR appears more attractively valued with a PEG of 0.58. UI earns a higher WallStSmart Score of 73/100 (B).
EXTR
Buy54
out of 100
Grade: C-
UI
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1491.5%
Fair Value
$0.94
Current Price
$15.46
$14.52 premium
Margin of Safety
-4.0%
Fair Value
$685.62
Current Price
$839.05
$153.43 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 75 of every $100 in revenue as profit
Growing faster than its price suggests
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Premium valuation, high expectations priced in
Trading at 21.5x book value
Premium valuation, high expectations priced in
Trading at 50.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : EXTR
The strongest argument for EXTR centers on Profit Margin, PEG Ratio. Profitability is solid with margins at 75.0% and operating margin at 6.4%. Revenue growth of 13.8% demonstrates continued momentum.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.
Bear Case : EXTR
The primary concerns for EXTR are P/E Ratio, Price/Book. A P/E of 257.7x leaves little room for execution misses.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 57.0x leaves little room for execution misses.
Key Dynamics to Monitor
EXTR profiles as a mature stock while UI is a growth play — different risk/reward profiles.
EXTR carries more volatility with a beta of 1.71 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
UI generates stronger free cash flow (259M), providing more financial flexibility.
Bottom Line
UI scores higher overall (73/100 vs 54/100), backed by strong 29.9% margins and 35.8% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Extreme Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Extreme Networks, Inc. provides software-driven networking solutions for businesses, data centers, and service provider customers globally. The company is headquartered in San Jose, California.
Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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