Analyzing Technical Communications (TCCO) & L3 Technologies (LLL)
Technical Communications (NASDAQ:TCCO) and L3 Technologies (NYSE:LLL) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Insider and Institutional Ownership
2.2% of Technical Communications shares are held by institutional investors. Comparatively, 82.5% of L3 Technologies shares are held by institutional investors. 25.7% of Technical Communications shares are held by insiders. Comparatively, 2.4% of L3 Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Technical Communications and L3 Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Technical Communications||$5.31 million||1.23||$100,000.00||N/A||N/A|
|L3 Technologies||$10.24 billion||1.84||$1.01 billion||$10.75||22.04|
L3 Technologies has higher revenue and earnings than Technical Communications.
Volatility & Risk
Technical Communications has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, L3 Technologies has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
This table compares Technical Communications and L3 Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
L3 Technologies pays an annual dividend of $3.40 per share and has a dividend yield of 1.4%. Technical Communications does not pay a dividend. L3 Technologies pays out 31.6% of its earnings in the form of a dividend. L3 Technologies has raised its dividend for 15 consecutive years.
This is a summary of current recommendations for Technical Communications and L3 Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
L3 Technologies has a consensus price target of $242.50, indicating a potential upside of 2.34%. Given L3 Technologies’ higher probable upside, analysts clearly believe L3 Technologies is more favorable than Technical Communications.
L3 Technologies beats Technical Communications on 11 of the 15 factors compared between the two stocks.
About Technical Communications
Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communications security devices, systems, and services worldwide. The company primarily provides voice, data, and fax, and voice networks. Its products include government systems, such as DSD 72A-SP military bulk encryptor, CSD 3324 SE telephone/fax encryptor, and the DSP 9000 radio encryption system, as well as the HSE 6000 squad radio headset and telephone encryptor for public safety special operations land mobile radio applications and for military applications. The company also provides secure office systems, such as CSD 4100 executive secure telephone and CipherTalk 8500 Internet protocol (IP)-based secure wireless phone. In addition, it offers network security systems comprising network encryption systems with KEYNET centralized key and device management for IP, SONET/SDH, and frame relay networks to secure data in transit from local area network to local area network and across wide area networks. The company's products are used to protect confidentiality in communications between radios, telephones, mobile phones, facsimile machines, and data network equipment over wires, fiber optic cables, radio waves, and microwave and satellite links. It serves various markets, including foreign and domestic governmental agencies, law enforcement and military agencies, telecommunications carriers, financial institutions, and multinational companies requiring protection of mission-critical information. The company sells directly to customers, original equipment manufacturers, and value-added resellers using its in-house sales force, as well as domestic and international representatives, consultants, and distributors. Technical Communications Corporation was founded in 1961 and is headquartered in Concord, Massachusetts.
About L3 Technologies
L3 Technologies, Inc. provides aircraft sustainment, simulation and training, night vision and image intensification equipment, and security and detection systems used on military, homeland security, and commercial platforms in the United States and internationally. It operates in three segments: Intelligence, Surveillance and Reconnaissance (ISR) Systems; Communications and Networked Systems (C&NS); and Electronic Systems. The company offers engineering, modernization and sustainment, space avionics and imaging payload, counter unmanned aircraft systems (CUAS) mission, cyber and electronic warfare, special mission command and control, modeling and simulation, and life cycle support services for ISR, airborne sensor, warrior sensor, space and sensor, aircraft, and intelligence and mission systems, as well as for military aviation services and advanced programs. It also provides network and communication systems, secure communications products, radio frequency components, satellite communication terminals and space, microwave and telemetry products, and secure data links in various business areas, such as broadband communication, naval power, space and power, and maritime sensor systems, as well as in advanced communications. In addition, the company offers components, products, subsystems, and systems, as well as related services to military and commercial customers in various business areas, including commercial aviation solutions, precision engagement systems, link training and simulation, and security and detection systems. It serves the United States (U.S.) Department of Defense and its prime contractors, the U.S. Government intelligence agencies, the U.S. Department of Homeland Security, foreign governments, and commercial customers. The company was formerly known as L-3 Communications Holdings, Inc. and changed its name to L3 Technologies, Inc. in December 2016. L3 Technologies, Inc. was founded in 1997 and is headquartered in New York, New York.
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