Comparing ZTE (OTCMKTS:ZTCOY) & Comtech Telecommunications (NASDAQ:CMTL)

Comtech Telecommunications (NASDAQ:CMTL) and ZTE (OTCMKTS:ZTCOY) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings & Valuation

This table compares Comtech Telecommunications and ZTE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comtech Telecommunications	$499.53 million	0.10	-$155.30 million	($2.21)	-0.79
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60

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

Analyst Recommendations

This is a summary of current ratings and target prices for Comtech Telecommunications and ZTE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comtech Telecommunications	1	1	1	0	2.00
ZTE	0	0	0	0	0.00

Comtech Telecommunications currently has a consensus target price of $2.50, suggesting a potential upside of 42.86%. Given Comtech Telecommunications’ stronger consensus rating and higher probable upside, research analysts plainly believe Comtech Telecommunications is more favorable than ZTE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Comtech Telecommunications	-5.52%	9.77%	1.05%
ZTE	5.89%	13.25%	4.04%

Risk and Volatility

Comtech Telecommunications has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, ZTE has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Summary

ZTE beats Comtech Telecommunications on 8 of the 12 factors compared between the two stocks.

About Comtech Telecommunications

Comtech Telecommunications Corp., together with its subsidiaries, engages in the provision of next-gen telecommunication solutions in the United States and internationally. The company’s Satellite and Space Communications segment offers satellite ground station technologies, services and system integration that facilitates the transmission of voice, video, and data over GEO, MEO and LEO satellite constellations, including solid-state and traveling wave tube power amplifiers, modems, VSAT platforms, and frequency converters; and satellite communications and tracking antenna systems, including high precision full motion fixed and mobile X/Y tracking antennas, RF feeds, reflectors, and radomes. This segment also provides over-the-horizon microwave troposcatter equipment that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction, including the Comtech; and solid-state, RF microwave high-power amplifiers and control components designed for radar, electronic warfare, data link, medical and aviation applications, as well as engages in the procurement and supply chain management of electrical, electronic, and electromechanical parts for satellite, launch vehicle, and manned space applications. Its Terrestrial and Wireless Networks segment offers next generation 911 solutions, which includes emergency call routing, location validation, policy-based routing rules, logging, and security functionality; emergency services IP network transport infrastructure for emergency services communications and support; call handling applications for public safety answering points; wireless emergency alerts solutions for network operators; and software and equipment for location-based and text messaging services for various applications including for public safety, commercial, and government services. The company was founded in 1967 and is headquartered in Melville, New York.

About ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.