Analyzing Lantronix (LTRX) and TESSCO Technologies (TESS)
Lantronix (NASDAQ: LTRX) and TESSCO Technologies (NASDAQ:TESS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
This table compares Lantronix and TESSCO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Lantronix and TESSCO Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lantronix presently has a consensus target price of $4.00, indicating a potential upside of 111.64%. Given Lantronix’s higher possible upside, equities research analysts clearly believe Lantronix is more favorable than TESSCO Technologies.
Institutional and Insider Ownership
17.6% of Lantronix shares are held by institutional investors. Comparatively, 58.7% of TESSCO Technologies shares are held by institutional investors. 52.0% of Lantronix shares are held by insiders. Comparatively, 26.9% of TESSCO Technologies 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.
Earnings & Valuation
This table compares Lantronix and TESSCO Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TESSCO Technologies||$544.45 million||0.19||$7.18 million||$0.25||49.20|
TESSCO Technologies has higher revenue and earnings than Lantronix. Lantronix is trading at a lower price-to-earnings ratio than TESSCO Technologies, indicating that it is currently the more affordable of the two stocks.
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 6.5%. Lantronix 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.
Volatility & Risk
Lantronix has a beta of -0.15, meaning that its stock price is 115% less volatile than the S&P 500. Comparatively, TESSCO Technologies has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Lantronix beats TESSCO Technologies on 8 of the 15 factors compared between the two stocks.
Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).
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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