Contrasting Comtech Telecommunications (NASDAQ:CMTL) & Extreme Networks (NASDAQ:EXTR)

Comtech Telecommunications (NASDAQ:CMTL) and Extreme Networks (NASDAQ:EXTR) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

91.0% of Extreme Networks shares are held by institutional investors. 2.2% of Comtech Telecommunications shares are held by insiders. Comparatively, 3.6% of Extreme Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Comtech Telecommunications and Extreme Networks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comtech Telecommunications	1	1	1	0	2.00
Extreme Networks	0	2	7	0	2.78

Comtech Telecommunications currently has a consensus price target of $2.50, suggesting a potential upside of 42.05%. Extreme Networks has a consensus price target of $32.25, suggesting a potential upside of 34.24%. Given Comtech Telecommunications’ higher probable upside, equities research analysts clearly believe Comtech Telecommunications is more favorable than Extreme Networks.

Profitability

This table compares Comtech Telecommunications and Extreme Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comtech Telecommunications	-5.52%	9.77%	1.05%
Extreme Networks	3.28%	88.88%	6.32%

Earnings and Valuation

This table compares Comtech Telecommunications and Extreme Networks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comtech Telecommunications	$454.16 million	0.12	-$155.30 million	($2.21)	-0.80
Extreme Networks	$1.28 billion	2.45	$42.12 million	$0.31	77.50

Extreme Networks has higher revenue and earnings than Comtech Telecommunications. Comtech Telecommunications is trading at a lower price-to-earnings ratio than Extreme Networks, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Comtech Telecommunications has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500. Comparatively, Extreme Networks has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Summary

Extreme Networks beats Comtech Telecommunications on 13 of the 14 factors compared between the two stocks.

About Comtech Telecommunications

Comtech Telecommunications Corp., together with its subsidiaries, engages in the provision of next-gen telecommunication solutions in the United States and internationally. The company’s Satellite and Space Communications segment offers satellite ground station technologies, services and system integration that facilitates the transmission of voice, video, and data over GEO, MEO and LEO satellite constellations, including solid-state and traveling wave tube power amplifiers, modems, VSAT platforms, and frequency converters; and satellite communications and tracking antenna systems, including high precision full motion fixed and mobile X/Y tracking antennas, RF feeds, reflectors, and radomes. This segment also provides over-the-horizon microwave troposcatter equipment that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction, including the Comtech; and solid-state, RF microwave high-power amplifiers and control components designed for radar, electronic warfare, data link, medical and aviation applications, as well as engages in the procurement and supply chain management of electrical, electronic, and electromechanical parts for satellite, launch vehicle, and manned space applications. Its Terrestrial and Wireless Networks segment offers next generation 911 solutions, which includes emergency call routing, location validation, policy-based routing rules, logging, and security functionality; emergency services IP network transport infrastructure for emergency services communications and support; call handling applications for public safety answering points; wireless emergency alerts solutions for network operators; and software and equipment for location-based and text messaging services for various applications including for public safety, commercial, and government services. The company was founded in 1967 and is headquartered in Melville, New York.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.