Analyzing Comtech Telecommunications Corp. (CMTL) & ViaSat (VSAT)
Comtech Telecommunications Corp. (NASDAQ: CMTL) and ViaSat (NASDAQ:VSAT) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
This is a summary of recent recommendations for Comtech Telecommunications Corp. and ViaSat, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comtech Telecommunications Corp.||0||2||3||0||2.60|
Comtech Telecommunications Corp. currently has a consensus price target of $17.90, suggesting a potential downside of 6.28%. ViaSat has a consensus price target of $76.11, suggesting a potential upside of 23.46%. Given ViaSat’s higher probable upside, analysts clearly believe ViaSat is more favorable than Comtech Telecommunications Corp..
Institutional & Insider Ownership
82.5% of Comtech Telecommunications Corp. shares are held by institutional investors. Comparatively, 94.8% of ViaSat shares are held by institutional investors. 6.4% of Comtech Telecommunications Corp. shares are held by insiders. Comparatively, 7.7% of ViaSat shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Comtech Telecommunications Corp. has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, ViaSat has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
This table compares Comtech Telecommunications Corp. and ViaSat’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comtech Telecommunications Corp.||2.02%||0.81%||0.42%|
Comtech Telecommunications Corp. pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. ViaSat does not pay a dividend. Comtech Telecommunications Corp. pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares Comtech Telecommunications Corp. and ViaSat’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Comtech Telecommunications Corp.||$554.98 million||0.81||$56.17 million||$0.50||38.20|
|ViaSat||$1.58 billion||2.26||$226.09 million||$0.25||246.60|
ViaSat has higher revenue and earnings than Comtech Telecommunications Corp.. Comtech Telecommunications Corp. is trading at a lower price-to-earnings ratio than ViaSat, indicating that it is currently the more affordable of the two stocks.
ViaSat beats Comtech Telecommunications Corp. on 11 of the 16 factors compared between the two stocks.
About Comtech Telecommunications Corp.
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.
ViaSat, Inc. is engaged in broadband technologies and services. The Company operates through three segments: satellite services, commercial networks and government systems. The satellite services segment provides satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States. The commercial networks segment develops and produces a range of end-to-end satellite and wireless communication systems, ground networking equipment and space-to-earth connectivity systems. The government systems segment develops and produces network-centric Internet Protocol (IP)-based fixed and mobile secure government communications systems, products, services and solutions, which are designed to enable the collection and dissemination of real-time digital information between command centers, communications nodes and air defense systems.
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