Comparing Comtech Telecomm. (CMTL) and ADTRAN (ADTN)
Comtech Telecomm. (NASDAQ: CMTL) and ADTRAN (NASDAQ:ADTN) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Comtech Telecomm. pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Comtech Telecomm. pays out 56.3% of its earnings in the form of a dividend. ADTRAN pays out 73.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
86.0% of Comtech Telecomm. shares are owned by institutional investors. Comparatively, 91.6% of ADTRAN shares are owned by institutional investors. 7.0% of Comtech Telecomm. shares are owned by company insiders. Comparatively, 3.0% of ADTRAN shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Comtech Telecomm. and ADTRAN’s 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||0.91||$15.82 million||$0.71||29.82|
|ADTRAN||$666.58 million||1.16||$23.83 million||$0.49||32.76|
ADTRAN has higher revenue and earnings than Comtech Telecomm.. Comtech Telecomm. is trading at a lower price-to-earnings ratio than ADTRAN, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Comtech Telecomm. has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, ADTRAN has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.
This table compares Comtech Telecomm. and ADTRAN’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Comtech Telecomm. and ADTRAN, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Comtech Telecomm. currently has a consensus price target of $20.63, indicating a potential downside of 2.57%. ADTRAN has a consensus price target of $20.75, indicating a potential upside of 29.28%. Given ADTRAN’s higher possible upside, analysts plainly believe ADTRAN is more favorable than Comtech Telecomm..
ADTRAN beats Comtech Telecomm. on 11 of the 16 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.
ADTRAN Company Profile
ADTRAN, Inc. (ADTRAN) is a provider of networking and communications equipment. The Company’s solutions enable voice, data, video and Internet communications across a range of network infrastructures. It operates through two segments: Network Solutions and Services & Support. Network Solutions includes software and hardware products that enable CSPs and enterprise customers to realize a fully connected world. It provides a full-range of network implementation, maintenance and managed services. Its solutions include Access & Aggregation, Customer Devices, and Traditional & Other Products. Its Access & Aggregation solutions are used by communications service providers (CSPs) to connect their network infrastructure to their subscribers. The portfolio of ADTRAN solutions within Access & Aggregation category includes a range of modular or fixed physical form factors designed to deliver the technology and economic fit based on the target subscriber density and environmental conditions.
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