Viavi Solutions (VIAV) and Comtech Telecommunications Corp. (CMTL) Critical Contrast
Viavi Solutions (NASDAQ: VIAV) and Comtech Telecommunications Corp. (NASDAQ:CMTL) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Comtech Telecommunications Corp. pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Viavi Solutions 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.
This is a breakdown of current ratings and recommmendations for Viavi Solutions and Comtech Telecommunications Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comtech Telecommunications Corp.||0||2||3||0||2.60|
Viavi Solutions presently has a consensus target price of $12.39, indicating a potential upside of 22.39%. Comtech Telecommunications Corp. has a consensus target price of $17.90, indicating a potential downside of 6.87%. Given Viavi Solutions’ stronger consensus rating and higher probable upside, equities analysts plainly believe Viavi Solutions is more favorable than Comtech Telecommunications Corp..
Valuation & Earnings
This table compares Viavi Solutions and Comtech Telecommunications Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Viavi Solutions||$811.40 million||2.83||$104.37 million||$0.71||14.25|
|Comtech Telecommunications Corp.||$554.98 million||0.82||$56.17 million||$0.50||38.44|
Viavi Solutions has higher revenue and earnings than Comtech Telecommunications Corp.. Viavi Solutions is trading at a lower price-to-earnings ratio than Comtech Telecommunications Corp., indicating that it is currently the more affordable of the two stocks.
This table compares Viavi Solutions and Comtech Telecommunications Corp.’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%|
Volatility and Risk
Viavi Solutions has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Comtech Telecommunications Corp. has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.
Institutional and Insider Ownership
94.5% of Viavi Solutions shares are held by institutional investors. Comparatively, 82.5% of Comtech Telecommunications Corp. shares are held by institutional investors. 0.4% of Viavi Solutions shares are held by company insiders. Comparatively, 6.4% of Comtech Telecommunications Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Viavi Solutions beats Comtech Telecommunications Corp. on 12 of the 16 factors compared between the two stocks.
Viavi Solutions Company Profile
Viavi Solutions Inc. (Viavi) is a provider of network test, monitoring and assurance solutions to communications service providers, enterprises and their ecosystems. The Company also offers thin film optical coatings, providing light management solutions to anti-counterfeiting, consumer and industrial, government and healthcare and other markets. The Company’s segments include Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). The NE segment provides testing solutions that access the network to perform build-out and maintenance tasks. The SE segment offers solutions, which are embedded systems that yield network, service and application performance data. The OSP segment provides optical security solutions. The OSP segment’s security offerings for the currency market include Optically Variable Pigment (OVP), Optically Variable Magnetic Pigment (OVMP) and banknote thread substrates.
Comtech Telecommunications Corp. Company Profile
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.
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