Comtech Telecomm. (NASDAQ: CMTL) and PC Tel (NASDAQ:PCTI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Comtech Telecomm. and PC Tel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comtech Telecomm. 0 2 4 0 2.67
PC Tel 0 0 1 0 3.00

Comtech Telecomm. currently has a consensus target price of $33.20, indicating a potential upside of 1.87%. PC Tel has a consensus target price of $8.50, indicating a potential upside of 32.40%. Given PC Tel’s stronger consensus rating and higher possible upside, analysts plainly believe PC Tel is more favorable than Comtech Telecomm..

Dividends

Comtech Telecomm. pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. PC Tel pays an annual dividend of $0.22 per share and has a dividend yield of 3.4%. Comtech Telecomm. pays out 117.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PC Tel pays out 220.0% 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 & Insider Ownership

88.2% of Comtech Telecomm. shares are held by institutional investors. Comparatively, 83.8% of PC Tel shares are held by institutional investors. 7.0% of Comtech Telecomm. shares are held by insiders. Comparatively, 6.8% of PC Tel shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Comtech Telecomm. has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, PC Tel has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Profitability

This table compares Comtech Telecomm. and PC Tel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comtech Telecomm. 5.38% 3.21% 1.89%
PC Tel 3.32% 1.44% 1.25%

Valuation & Earnings

This table compares Comtech Telecomm. and PC Tel’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comtech Telecomm. $550.37 million 1.40 $15.82 million $0.34 95.85
PC Tel $91.44 million 1.28 $3.82 million $0.10 64.20

Comtech Telecomm. has higher revenue and earnings than PC Tel. PC Tel is trading at a lower price-to-earnings ratio than Comtech Telecomm., indicating that it is currently the more affordable of the two stocks.

Summary

Comtech Telecomm. beats PC Tel on 12 of the 16 factors compared between the two stocks.

Comtech Telecomm. Company Profile

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions. The company's Commercial Solutions segment provides ground-based equipment, such as single channel per carrier modems and solid state amplifiers that facilitate the transmission of voice, video, and data, as well as offers traveling wave tube amplifiers comprising high power narrow-band amplifiers that are used to amplify signals from satellite earth stations; and safety and security technology solutions that enable 911 c. This segment also offers enterprise application technologies, including location-based technology, such as Trusted Location, a software-based scoring system that allows providers to determine mobile location and identify fraudulent behavior and other security risks; Look4, an application that enables customers to build their own applications; Indoor Location, a solution that enables the determination of a cell phone user's geospatial position; text messaging platforms that are used by wireless carriers to provide short-messaging services and to communicate with 911 public safety answering points; and VirtuMedix, a digital health platform that enables virtual healthcare. The company's Government Solutions segment provides command and control technologies, including tactical communications, managed networks, logistics, and end-to-end integration; cyber security training and computer network operations; and satellite-based mobile communications and tracking systems. This segment also offers over-the-horizon microwave systems, such as equipment and systems that transmit digitized voice, video, and data; and solid state high power broadband amplifiers designed for radar, electronic warfare, jamming, medical, and aviation applications. The company serves commercial and government customers worldwide. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York.

PC Tel Company Profile

PCTEL, Inc., together with its subsidiaries, delivers performance critical telecom solutions in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. The company operates in two segments, Connected Solutions and RF Solutions. The Connected Solutions segment designs and delivers precision antennas, which are used primarily in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things. The RF Solutions segment provides test tools that enhance the performance of wireless networks. The company serves public and private carriers, wireless infrastructure providers, wireless equipment distributors, and value added resellers, as well as original equipment manufacturer providers. PCTEL, Inc. was founded in 1994 and is headquartered in Bloomingdale, Illinois.

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