Head-To-Head Review: TESSCO Technologies (TESS) vs. West Corp (WSTC)
TESSCO Technologies (NASDAQ: TESS) and West Corp (NASDAQ:WSTC) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
This is a summary of current ratings and price targets for TESSCO Technologies and West Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
West Corp has a consensus price target of $24.50, indicating a potential upside of 4.26%. Given West Corp’s higher possible upside, analysts clearly believe West Corp is more favorable than TESSCO Technologies.
Risk and Volatility
TESSCO Technologies has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, West Corp has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 6.1%. West Corp pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. 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. West Corp pays out 17.9% of its earnings in the form of a dividend.
This table compares TESSCO Technologies and West Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
58.7% of TESSCO Technologies shares are owned by institutional investors. Comparatively, 67.4% of West Corp shares are owned by institutional investors. 26.9% of TESSCO Technologies shares are owned by company insiders. Comparatively, 4.6% of West Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares TESSCO Technologies and West Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TESSCO Technologies||$544.45 million||0.20||$7.18 million||$0.25||52.80|
|West Corp||$2.29 billion||0.86||$636.33 million||$2.51||9.36|
West Corp has higher revenue and earnings than TESSCO Technologies. West Corp is trading at a lower price-to-earnings ratio than TESSCO Technologies, indicating that it is currently the more affordable of the two stocks.
West Corp beats TESSCO Technologies on 10 of the 14 factors compared between the two stocks.
TESSCO Technologies Company Profile
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.
West Corp Company Profile
West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.
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