Head-To-Head Comparison: Veea (NASDAQ:VEEA) vs. Comtech Telecommunications (NASDAQ:CMTL)

Comtech Telecommunications (NASDAQ:CMTL) and Veea (NASDAQ:VEEA) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Comtech Telecommunications and Veea, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comtech Telecommunications	1	1	2	0	2.25
Veea	1	0	0	0	1.00

Comtech Telecommunications currently has a consensus target price of $3.62, indicating a potential upside of 160.79%. Given Comtech Telecommunications’ stronger consensus rating and higher possible upside, analysts clearly believe Comtech Telecommunications is more favorable than Veea.

Profitability

This table compares Comtech Telecommunications and Veea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comtech Telecommunications	-9.27%	10.95%	0.94%
Veea	N/A	N/A	-41.65%

Risk & Volatility

Comtech Telecommunications has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Veea has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Institutional and Insider Ownership

25.9% of Veea shares are held by institutional investors. 2.2% of Comtech Telecommunications shares are held by insiders. Comparatively, 60.8% of Veea shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Comtech Telecommunications and Veea”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comtech Telecommunications	$249.61 million	0.17	-$155.30 million	($2.31)	-0.60
Veea	$220,000.00	59.51	-$6.66 million	($5.20)	-0.81

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

Summary

Comtech Telecommunications beats Veea on 9 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 Veea

Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.