Head to Head Contrast: CommScope (NASDAQ:COMM) versus Anterix (NASDAQ:ATEX)

CommScope (NASDAQ:COMM) and Anterix (NASDAQ:ATEX) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Valuation and Earnings

This table compares CommScope and Anterix”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CommScope	$4.42 billion	0.43	-$315.50 million	$2.73	3.18
Anterix	$6.03 million	78.15	-$11.37 million	($0.63)	-40.02

Anterix has lower revenue, but higher earnings than CommScope. Anterix is trading at a lower price-to-earnings ratio than CommScope, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

88.0% of CommScope shares are owned by institutional investors. Comparatively, 87.7% of Anterix shares are owned by institutional investors. 2.6% of CommScope shares are owned by insiders. Comparatively, 45.6% of Anterix shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CommScope and Anterix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CommScope	16.89%	-4.51%	1.68%
Anterix	-188.56%	-29.71%	-13.48%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CommScope and Anterix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CommScope	2	3	0	0	1.60
Anterix	0	0	1	1	3.50

CommScope presently has a consensus target price of $4.88, indicating a potential downside of 43.90%. Anterix has a consensus target price of $67.00, indicating a potential upside of 165.77%. Given Anterix’s stronger consensus rating and higher possible upside, analysts plainly believe Anterix is more favorable than CommScope.

Risk and Volatility

CommScope has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, Anterix has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Summary

CommScope beats Anterix on 8 of the 15 factors compared between the two stocks.

About CommScope

CommScope Holding Company, Inc. provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates through Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments. The CCS segment provides network solutions for indoor and outdoor network applications; and fiber optic and copper connectivity and cable solutions for use in telecommunications, cable television, residential broadband networks, data centers and business enterprises. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, wireless Spectrum management business and Comsearch products. The NICS segment offers indoor and outdoor Wi-Fi and long-term evolution (LTE) access points, access and aggregation switches; an Internet of Things suite, on-premises and cloud-based control and management systems; and software and software-as-a-service applications. The ANS segment offers cable modem termination systems, video infrastructure, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network. It offers its products and services through independent distributors, specialized resellers and distributors, wireless and wireline operators, original equipment manufacturers, and system integrators, as well as directly to customers. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is based in Claremont, North Carolina.

About Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.