Reviewing UTStarcom Holdings Corp (UTSI) & TESSCO Technologies (TESS)
UTStarcom Holdings Corp (NASDAQ: UTSI) and TESSCO Technologies (NASDAQ:TESS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
UTStarcom Holdings Corp has a beta of -0.3, indicating that its stock price is 130% less volatile than the S&P 500. Comparatively, TESSCO Technologies has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
Earnings & Valuation
This table compares UTStarcom Holdings Corp and TESSCO Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|UTStarcom Holdings Corp||$80.18 million||1.07||$535,000.00||$0.02||121.56|
|TESSCO Technologies||$544.45 million||0.20||$7.18 million||$0.25||51.00|
TESSCO Technologies has higher revenue and earnings than UTStarcom Holdings Corp. TESSCO Technologies is trading at a lower price-to-earnings ratio than UTStarcom Holdings Corp, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for UTStarcom Holdings Corp and TESSCO Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|UTStarcom Holdings Corp||0||0||0||0||N/A|
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 6.3%. UTStarcom Holdings Corp does not pay a dividend. TESSCO Technologies pays out 320.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
25.9% of UTStarcom Holdings Corp shares are held by institutional investors. Comparatively, 58.7% of TESSCO Technologies shares are held by institutional investors. 2.7% of UTStarcom Holdings Corp shares are held by company insiders. Comparatively, 26.9% of TESSCO Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares UTStarcom Holdings Corp and TESSCO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|UTStarcom Holdings Corp||N/A||N/A||N/A|
TESSCO Technologies beats UTStarcom Holdings Corp on 10 of the 13 factors compared between the two stocks.
About UTStarcom Holdings Corp
UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.
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.
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