Comtech Telecomm. (CMTL) and TESSCO Technologies (TESS) Financial Contrast

Comtech Telecomm. (NASDAQ: CMTL) and TESSCO Technologies (NASDAQ:TESS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Dividends

Comtech Telecomm. pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. Comtech Telecomm. pays out 56.3% of its earnings in the form of a dividend. TESSCO Technologies pays out 210.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Comtech Telecomm. has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, TESSCO Technologies has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Comtech Telecomm. and TESSCO Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comtech Telecomm. 0 2 3 0 2.60
TESSCO Technologies 0 0 0 0 N/A

Comtech Telecomm. presently has a consensus price target of $20.63, indicating a potential downside of 5.78%. Given Comtech Telecomm.’s higher possible upside, equities research analysts clearly believe Comtech Telecomm. is more favorable than TESSCO Technologies.

Valuation & Earnings

This table compares Comtech Telecomm. and TESSCO Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comtech Telecomm. $550.37 million 1.00 $15.82 million $0.71 32.93
TESSCO Technologies $533.29 million 0.36 $1.44 million $0.38 61.05

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

Institutional & Insider Ownership

86.6% of Comtech Telecomm. shares are held by institutional investors. Comparatively, 55.8% of TESSCO Technologies shares are held by institutional investors. 7.0% of Comtech Telecomm. shares are held by insiders. Comparatively, 26.9% of TESSCO Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Comtech Telecomm. and TESSCO Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comtech Telecomm. 3.11% 1.87% 1.04%
TESSCO Technologies 0.57% 3.43% 1.96%

Summary

Comtech Telecomm. beats TESSCO Technologies on 10 of the 15 factors compared between the two stocks.

Comtech Telecomm. 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.

TESSCO Technologies Company Profile

TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.

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