Critical Analysis: ViaSat (VSAT) & Comtech Telecommunications Corp. (CMTL)
ViaSat (NASDAQ: VSAT) and Comtech Telecommunications Corp. (NASDAQ:CMTL) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Comtech Telecommunications Corp. pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. ViaSat 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 is a breakdown of current ratings and target prices for ViaSat and Comtech Telecommunications Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comtech Telecommunications Corp.||0||2||3||0||2.60|
ViaSat currently has a consensus target price of $76.11, suggesting a potential upside of 23.46%. Comtech Telecommunications Corp. has a consensus target price of $17.90, suggesting a potential downside of 6.28%. Given ViaSat’s higher probable upside, analysts plainly believe ViaSat is more favorable than Comtech Telecommunications Corp..
Volatility & Risk
ViaSat has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Comtech Telecommunications Corp. has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
Earnings & Valuation
This table compares ViaSat and Comtech Telecommunications Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ViaSat||$1.58 billion||2.26||$226.09 million||$0.25||246.60|
|Comtech Telecommunications Corp.||$554.98 million||0.81||$56.17 million||$0.50||38.20|
ViaSat has higher revenue and earnings than Comtech Telecommunications Corp.. Comtech Telecommunications Corp. is trading at a lower price-to-earnings ratio than ViaSat, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.8% of ViaSat shares are owned by institutional investors. Comparatively, 82.5% of Comtech Telecommunications Corp. shares are owned by institutional investors. 7.7% of ViaSat shares are owned by insiders. Comparatively, 6.4% of Comtech Telecommunications Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares ViaSat and Comtech Telecommunications Corp.’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%|
ViaSat beats Comtech Telecommunications Corp. on 11 of the 16 factors compared between the two stocks.
ViaSat, Inc. is engaged in broadband technologies and services. The Company operates through three segments: satellite services, commercial networks and government systems. The satellite services segment provides satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States. The commercial networks segment develops and produces a range of end-to-end satellite and wireless communication systems, ground networking equipment and space-to-earth connectivity systems. The government systems segment develops and produces network-centric Internet Protocol (IP)-based fixed and mobile secure government communications systems, products, services and solutions, which are designed to enable the collection and dissemination of real-time digital information between command centers, communications nodes and air defense systems.
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.
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