Critical Comparison: Calix (NYSE:CALX) versus Comba Telecom Systems (OTCMKTS:COBJF)

Comba Telecom Systems (OTCMKTS:COBJF) and Calix (NYSE:CALX) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Comba Telecom Systems and Calix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comba Telecom Systems	0	0	0	0	0.00
Calix	1	1	7	0	2.67

Calix has a consensus price target of $63.86, suggesting a potential upside of 71.69%. Given Calix’s stronger consensus rating and higher possible upside, analysts plainly believe Calix is more favorable than Comba Telecom Systems.

Valuation and Earnings

This table compares Comba Telecom Systems and Calix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comba Telecom Systems	N/A	N/A	N/A	($0.01)	-11.31
Calix	$1.00 billion	2.34	$17.88 million	$0.74	50.26

Calix has higher revenue and earnings than Comba Telecom Systems. Comba Telecom Systems is trading at a lower price-to-earnings ratio than Calix, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

11.0% of Comba Telecom Systems shares are owned by institutional investors. Comparatively, 98.1% of Calix shares are owned by institutional investors. 17.4% of Calix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Comba Telecom Systems and Calix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comba Telecom Systems	N/A	N/A	N/A
Calix	4.61%	6.17%	4.90%

Summary

Calix beats Comba Telecom Systems on 11 of the 11 factors compared between the two stocks.

About Comba Telecom Systems

Comba Telecom Systems Holdings Limited, an investment holding company, research, develops, manufactures, and sells wireless telecommunications network system equipment and related engineering services in Mainland China, rest of Asia Pacific, the Americas, the European Union, the Middle East, and internationally. It operates through two segments: Wireless Telecommunications Network System Equipment and Services, and Operator Telecommunication Services. The company provides base station antennas and subsystems; open radio; ScanViS; and network system products, as well as cell site and enterprise solutions; consultancy, DAS network design, maintenance, and network optimization; and technical support, value-added, and repairing services. It engages in assembling, trading, and marketing of wireless telecommunications network system equipment; manufacture and sale of intelligent machinery; research and development, and trading of digital microwave system equipment; marketing; and provision of hardware and software solutions and services. It serves the airport, education, government and public safety, healthcare, hospitality, retail, stadium, and transportation industries. The company was founded in 1995 and is headquartered in Tai Po, Hong Kong.

About Calix

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.