TESSCO Technologies (NASDAQ: TESS) and Calix (NYSE:CALX) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitabiliy, analyst recommendations, valuation, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares TESSCO Technologies and Calix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TESSCO Technologies $533.30 million 0.21 $6.24 million $0.18 75.56
Calix $477.93 million 0.74 -$46.32 million ($1.01) -7.03

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

Dividends

TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 5.9%. Calix does not pay a dividend. TESSCO Technologies pays out 444.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares TESSCO Technologies and Calix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TESSCO Technologies 0.27% 1.79% 1.10%
Calix -10.46% -22.23% -13.79%

Volatility & Risk

TESSCO Technologies has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Calix has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for TESSCO Technologies and Calix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TESSCO Technologies 0 0 0 0 N/A
Calix 0 3 1 0 2.25

Calix has a consensus target price of $7.67, suggesting a potential upside of 7.98%. Given Calix’s higher probable upside, analysts clearly believe Calix is more favorable than TESSCO Technologies.

Insider & Institutional Ownership

59.9% of TESSCO Technologies shares are held by institutional investors. Comparatively, 64.8% of Calix shares are held by institutional investors. 26.7% of TESSCO Technologies shares are held by insiders. Comparatively, 16.5% of Calix shares are held by 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.

Summary

TESSCO Technologies beats Calix on 9 of the 14 factors compared between the two stocks.

About TESSCO Technologies

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.

About Calix

Calix, Inc. provides broadband communications access systems and software for fiber- and copper-based network architectures that enable communications service providers (CSPs), to transform their networks and connect to their residential and business subscribers. The Company enables CSPs to provide various services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. It develops and sells carrier-class hardware and cloud products. Its portfolio consists of three core systems and/or nodes: E-Series access systems and nodes (E-Series systems and nodes), B6 access nodes (B-Series nodes), and the C7 multiservice, multiprotocol access system (C-Series system). These systems and nodes are complemented by the P-Series optical network terminals and residential gateways, the GigaFamily of GigaCenters, GigaHubs, and GigaPoints, the Calix Management System, OpenLink Cable software and Compass Cloud family of software-as-a-service products.

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