Comtech Telecomm. (NASDAQ: CMTL) and EMCORE (NASDAQ:EMKR) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Comtech Telecomm. pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. EMCORE does not pay a dividend. Comtech Telecomm. pays out 56.3% of its earnings in the form of a dividend.
This is a breakdown of current recommendations and price targets for Comtech Telecomm. and EMCORE, 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, suggesting a potential downside of 5.30%. EMCORE has a consensus price target of $9.13, suggesting a potential upside of 30.36%. Given EMCORE’s higher probable upside, analysts clearly believe EMCORE is more favorable than Comtech Telecomm..
Volatility & Risk
Comtech Telecomm. has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
Earnings & Valuation
This table compares Comtech Telecomm. and EMCORE’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Comtech Telecomm.||$550.37 million||0.93||$15.82 million||$0.71||30.68|
|EMCORE||$122.89 million||1.55||$8.23 million||$0.30||23.33|
Comtech Telecomm. has higher revenue and earnings than EMCORE. EMCORE is trading at a lower price-to-earnings ratio than Comtech Telecomm., indicating that it is currently the more affordable of the two stocks.
This table compares Comtech Telecomm. and EMCORE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
85.9% of Comtech Telecomm. shares are owned by institutional investors. Comparatively, 77.6% of EMCORE shares are owned by institutional investors. 7.0% of Comtech Telecomm. shares are owned by insiders. Comparatively, 0.8% of EMCORE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Comtech Telecomm. beats EMCORE on 10 of the 16 factors compared between the two stocks.
About Comtech Telecomm.
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.
EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.
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