Contrasting Comtech Telecommunications Corp. (CMTL) & Oclaro (OCLR)
Comtech Telecommunications Corp. (NASDAQ: CMTL) and Oclaro (NASDAQ:OCLR) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
This is a summary of recent ratings and target prices for Comtech Telecommunications Corp. and Oclaro, as reported by MarketBeat.
|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 target price of $17.90, suggesting a potential downside of 13.36%. Oclaro has a consensus target price of $13.33, suggesting a potential upside of 42.00%. Given Oclaro’s stronger consensus rating and higher possible upside, analysts plainly believe Oclaro is more favorable than Comtech Telecommunications Corp..
Risk and Volatility
Comtech Telecommunications Corp. has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Oclaro has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.
Earnings & Valuation
This table compares Comtech Telecommunications Corp. and Oclaro’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||0.88||$56.17 million||$0.50||41.32|
|Oclaro||$600.97 million||2.64||$140.44 million||$0.75||12.52|
Oclaro has higher revenue and earnings than Comtech Telecommunications Corp.. Oclaro 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.
Comtech Telecommunications Corp. pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Oclaro 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 table compares Comtech Telecommunications Corp. and Oclaro’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%|
Insider and Institutional Ownership
88.8% of Comtech Telecommunications Corp. shares are owned by institutional investors. Comparatively, 70.5% of Oclaro shares are owned by institutional investors. 6.4% of Comtech Telecommunications Corp. shares are owned by company insiders. Comparatively, 2.3% of Oclaro shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Oclaro beats Comtech Telecommunications Corp. on 12 of the 17 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.
Oclaro, Inc. is a provider of optical components, modules and subsystems for the core optical transport, service provider, enterprise and data center markets. The Company provides various solutions for optical networks and interconnects driving the next wave of streaming video, cloud computing, application virtualization and other bandwidth-intensive and high-speed applications. The Company’s product offerings include client side transceivers, line side transceivers, tunable laser transmitters, lithium niobate modulators, transponder modules, and discrete lasers and receivers. It designs, manufactures and markets optical components, modules and subsystems that generate, detect, combine and separate light signals in optical communications networks. The Company supplies transmission products at the component level and the module level into 10 gigabits per second (Gb/s), 40 Gb/s and 100 Gb/s communications solutions.
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