Comtech Telecomm. (NASDAQ:CMTL) and GTX (OTCMKTS:GTXO) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Dividends

Comtech Telecomm. pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. GTX does not pay a dividend. Comtech Telecomm. pays out 53.3% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Comtech Telecomm. 5.22% 3.67% 2.17%
GTX -264.10% N/A -460.79%

Institutional and Insider Ownership

85.9% of Comtech Telecomm. shares are owned by institutional investors. 7.0% of Comtech Telecomm. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Comtech Telecomm. and GTX’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comtech Telecomm. $570.59 million 1.18 $29.76 million $0.75 37.59
GTX $530,000.00 0.67 -$1.26 million N/A N/A

Comtech Telecomm. has higher revenue and earnings than GTX.

Risk & Volatility

Comtech Telecomm. has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, GTX has a beta of 2.97, suggesting that its stock price is 197% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Comtech Telecomm. and GTX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comtech Telecomm. 0 2 4 0 2.67
GTX 0 0 0 0 N/A

Comtech Telecomm. presently has a consensus target price of $33.80, suggesting a potential upside of 19.90%. Given Comtech Telecomm.’s higher probable upside, equities research analysts clearly believe Comtech Telecomm. is more favorable than GTX.

Summary

Comtech Telecomm. beats GTX on 11 of the 13 factors compared between the two stocks.

About Comtech Telecomm.

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions. The company's Commercial Solutions segment offers ground-based equipment, including single channel per carrier modems and solid-state amplifiers that facilitate the transmission of voice, video, and data over satellite links; and traveling wave tube amplifiers, such as high power narrow-band amplifiers used to amplify signals from satellite earth stations, as well as safety and security technologies. It also provides enterprise application technologies comprising location-based technologies that include 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 enable customers to build their own applications; Indoor Location, a solution that enables the determination of a cell phone user's geospatial position; and text messaging platforms that are used by wireless carriers to provide short-messaging services and communicate with 911 public safety answering points. The company's Government Solutions segment offers command and control technologies, which comprise 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. It also provides over-the-horizon microwave systems, including 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.

About GTX

GTX Corp, through its subsidiaries, designs, develops, and sells various products and services in the personal location services marketplace in the United States and internationally. The company offers global positioning system (GPS) and Bluetooth low energy (BLE), and hand-held GPS tracking devices with a hosted and scalable backend monitoring platform for real-time tracking of the whereabouts of people, pets, or high valued assets through a miniaturized transceiver module, wireless connectivity gateway, middleware, and viewing portal. It also develops and owns LOCiMobile, a suite of mobile tracking applications that turn smartphones and tablets, such as iPhone, iPad, Google Android, and other GPS enabled handsets into a tracking and location based social networking device, which can be viewed through its tracking portal or on any connected device with Internet access. In addition, the company offers Track My Work Force, which allows employers to track and monitor employees, drivers, sales representatives, and others using their smartphone, tablet, or any wireless devices; and other applications. GTX Corp has a collaboration agreement with Veristride, Inc. to incorporate its inductive charging technology, enhance and miniaturize the electronics, develop a BLE, and embed the final hardware assembly into SmartSole, a GPS tracking device. The company was founded in 2002 and is headquartered in Los Angeles, California.

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