Reviewing Maxar Technologies (MAXR) and Commscope (COMM)

Maxar Technologies (NYSE:MAXR) and Commscope (NASDAQ:COMM) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Maxar Technologies and Commscope’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxar Technologies 3.95% 11.10% 3.46%
Commscope 4.43% 24.14% 5.63%

Dividends

Maxar Technologies pays an annual dividend of $1.13 per share and has a dividend yield of 3.8%. Commscope does not pay a dividend. Maxar Technologies pays out 53.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Maxar Technologies and Commscope, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxar Technologies 0 2 6 0 2.75
Commscope 0 8 5 0 2.38

Maxar Technologies presently has a consensus price target of $63.38, indicating a potential upside of 114.47%. Commscope has a consensus price target of $33.95, indicating a potential upside of 35.55%. Given Maxar Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Maxar Technologies is more favorable than Commscope.

Institutional and Insider Ownership

84.0% of Maxar Technologies shares are held by institutional investors. 3.4% of Commscope shares are held by company 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.

Valuation & Earnings

This table compares Maxar Technologies and Commscope’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Maxar Technologies $1.26 billion 1.39 $100.40 million $2.13 13.87
Commscope $4.56 billion 1.06 $193.76 million $2.02 12.40

Commscope has higher revenue and earnings than Maxar Technologies. Commscope is trading at a lower price-to-earnings ratio than Maxar Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Maxar Technologies beats Commscope on 8 of the 15 factors compared between the two stocks.

Maxar Technologies Company Profile

Maxar Technologies Ltd., a space and geospatial intelligence company, provides satellites, earth imagery, geospatial data, and analytics for the commercial and government customers worldwide. The company operates through three segments: Space Systems, Imagery, and Services. The Space Systems segment supplies space and ground based infrastructure and information solutions, including communication and imaging satellites, payloads and antenna subsystems, space-based and airborne surveillance solutions, and associated ground infrastructure and support services for communications and surveillance and intelligence applications. This segment also offers a range of services, such as television and radio distribution, broadband Internet, and mobile communications in the communications market; and spacecraft and subsystems for the U.S. government and other customers, as well as robotic systems for the space and terrestrial markets. It serves government agencies, communication satellite operators, and communication satellite manufacturers. The Imagery segment supplies integrated electro-optical and radar imagery products for the U.S., Canadian, and other international government agencies, such as defense and intelligence, as well as commercial customers in various markets. The Services segment provides geospatial products and services for the U.S. government, as well as for other international governments for intelligence, global development organizations, and commercial customers. The company was formerly known as MacDonald, Dettwiler and Associates Ltd. and changed its name to Maxar Technologies Ltd. in October 2017. Maxar Technologies Ltd. was founded in 1969 and is based in Westminster, Colorado.

Commscope Company Profile

CommScope Holding Company, Inc. provides infrastructure solutions for communications networks worldwide. The company's CommScope Connectivity Solutions segment offers optical fiber and twisted pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the SYSTIMAX, NETCONNECT, and Uniprise brands; and fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems, and cable assemblies for use in offices and data centers. This segment also provides fiber optic connectivity solutions, including hardened connector systems, fiber distribution hubs and management systems, couplers and splitters, plug and play multiport service terminals, hardened optical terminating enclosures, high density cable assemblies, splices, and splice closures that supports video, voice, and high-speed data services provided by telecommunications operators and multi-system operators. Its CommScope Mobility Solutions segment offers macro cell site solutions for wireless tower sites and on rooftops, such as base station antennas, microwave antennas, hybrid fiber-feeder and power cables, coaxial cables, connectors, and filters; metro cell solutions for street poles and other urban structures comprising radio frequency delivery and connectivity solutions, equipment housing, and concealment; and small cell and distributed antenna system (DAS) solutions consisting of DAS and distributed cell solutions that allow wireless operators to enhance efficiency, and cellular coverage and capacity in network conditions. This segment provides its solutions under the Andrew brand. CommScope Holding Company, Inc. sells its products through a network of distributors, system integrators, and resellers. The company was formerly known as Cedar I Holding Company, Inc. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.

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