Communications Systems (NASDAQ: JCS) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it compare to its competitors? We will compare Communications Systems to similar companies based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Communications Systems and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Communications Systems 0 0 1 0 3.00
Communications Systems Competitors 472 2687 4044 194 2.54

Communications Systems currently has a consensus price target of $6.00, indicating a potential upside of 46.34%. As a group, “Communications & Networking” companies have a potential upside of 27.42%. Given Communications Systems’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Communications Systems is more favorable than its competitors.

Volatility & Risk

Communications Systems has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Communications Systems’ competitors have a beta of 1.17, suggesting that their average share price is 17% more volatile than the S&P 500.

Institutional and Insider Ownership

31.8% of Communications Systems shares are held by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are held by institutional investors. 17.5% of Communications Systems shares are held by company insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Communications Systems and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Communications Systems $91.24 million -$1.87 million -4.18
Communications Systems Competitors $2.87 billion $625.83 million 26.52

Communications Systems’ competitors have higher revenue and earnings than Communications Systems. Communications Systems is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Communications Systems and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Communications Systems -9.55% -14.44% -12.11%
Communications Systems Competitors -1.68% -6.44% 0.52%

Dividends

Communications Systems pays an annual dividend of $0.16 per share and has a dividend yield of 3.9%. Communications Systems pays out -16.3% of its earnings in the form of a dividend. As a group, “Communications & Networking” companies pay a dividend yield of 2.0% and pay out 40.9% of their earnings in the form of a dividend. Communications Systems is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Communications Systems competitors beat Communications Systems on 8 of the 14 factors compared.

About Communications Systems

Communications Systems, Inc. (CSI) operates directly and through its subsidiaries located in the United States, Costa Rica and the United Kingdom. The Company operates through three segments: Suttle, Transition Networks and JDL Technologies (JDL). The Company provides physical connectivity infrastructure products and services for global deployments of broadband networks. The Company is principally engaged through its subsidiary and business unit, Suttle, Inc., in the manufacture and sale of connectivity infrastructure products for broadband and voice communications, and through its another subsidiary and business unit, Transition Networks, Inc., in the manufacture and sale of core media conversion products for broadband networks. Through its JDL Technologies, Inc. subsidiary and business unit, CSI provides information technology (IT) solutions, including network design, computer infrastructure installations, IT service management, network security and network operation services.

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