Head-To-Head Analysis: Lantronix (LTRX) vs. Comtech Telecommunications Corp. (CMTL)

Lantronix (NASDAQ: LTRX) and Comtech Telecommunications Corp. (NASDAQ:CMTL) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

17.5% of Lantronix shares are held by institutional investors. Comparatively, 88.1% of Comtech Telecommunications Corp. shares are held by institutional investors. 52.4% of Lantronix shares are held by company insiders. Comparatively, 6.4% of Comtech Telecommunications Corp. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Lantronix has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500. Comparatively, Comtech Telecommunications Corp. has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.

Dividends

Comtech Telecommunications Corp. pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Lantronix does not pay a dividend. Comtech Telecommunications Corp. pays out 59.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Lantronix and Comtech Telecommunications Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lantronix 0 0 1 0 3.00
Comtech Telecommunications Corp. 0 2 3 0 2.60

Lantronix currently has a consensus target price of $4.00, suggesting a potential upside of 103.05%. Comtech Telecommunications Corp. has a consensus target price of $18.38, suggesting a potential downside of 14.46%. Given Lantronix’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lantronix is more favorable than Comtech Telecommunications Corp..

Valuation and Earnings

This table compares Lantronix and Comtech Telecommunications Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lantronix $44.73 million 0.79 $657,000.00 ($0.02) -98.50
Comtech Telecommunications Corp. $550.37 million 0.92 $62.20 million $0.67 32.06

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

Profitability

This table compares Lantronix and Comtech Telecommunications Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lantronix -0.62% 2.55% 1.76%
Comtech Telecommunications Corp. 2.88% 1.70% 0.92%

Summary

Comtech Telecommunications Corp. beats Lantronix on 9 of the 15 factors compared between the two stocks.

Lantronix Company Profile

Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).

Comtech Telecommunications Corp. Company Profile

Comtech Telecommunications Corp. designs, develops, produces and markets products, systems and services for communications solutions. The Company operates through two segments: Commercial Solutions and Government Solutions. It offers communications solutions, including command and control technologies, safety and security technologies and enterprise technologies. Its Commercial Solutions segment provides satellite communications (such as satellite earth station modems and traveling wave tube amplifiers), public safety systems (such as next generation 911 technologies) and enterprise application technologies (such as messaging and trusted location-based technologies). The Government Solutions segment includes command and control technologies, troposcatter technologies, and radio frequency power and switching technologies. It serves system and network suppliers in the global satellite, defense, broadcast and aerospace industries, and the United States federal government, among others.

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