Comtech Telecommunications Corp. (CMTL) versus Sonus Networks (SONS) Financial Analysis
Sonus Networks (NASDAQ: SONS) and Comtech Telecommunications Corp. (NASDAQ:CMTL) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Earnings and Valuation
This table compares Sonus Networks and Comtech Telecommunications Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sonus Networks||$246.81 million||1.56||-$6.34 million||($0.41)||-18.90|
|Comtech Telecommunications Corp.||$554.98 million||0.80||$56.17 million||$0.50||37.44|
Comtech Telecommunications Corp. has higher revenue and earnings than Sonus Networks. Sonus Networks is trading at a lower price-to-earnings ratio than Comtech Telecommunications Corp., indicating that it is currently the more affordable of the two stocks.
This table compares Sonus Networks and Comtech Telecommunications Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comtech Telecommunications Corp.||2.02%||0.81%||0.42%|
This is a breakdown of current ratings and price targets for Sonus Networks and Comtech Telecommunications Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comtech Telecommunications Corp.||0||2||4||0||2.67|
Sonus Networks currently has a consensus price target of $8.21, suggesting a potential upside of 5.91%. Comtech Telecommunications Corp. has a consensus price target of $18.08, suggesting a potential downside of 3.40%. Given Sonus Networks’ higher probable upside, equities analysts clearly believe Sonus Networks is more favorable than Comtech Telecommunications Corp..
Insider and Institutional Ownership
65.3% of Sonus Networks shares are owned by institutional investors. Comparatively, 82.6% of Comtech Telecommunications Corp. shares are owned by institutional investors. 7.7% of Sonus Networks shares are owned by insiders. Comparatively, 6.4% of Comtech Telecommunications Corp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Comtech Telecommunications Corp. pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Sonus Networks does not pay a dividend. Comtech Telecommunications Corp. pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Sonus Networks has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Comtech Telecommunications Corp. has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.
Comtech Telecommunications Corp. beats Sonus Networks on 9 of the 14 factors compared between the two stocks.
About Sonus Networks
Sonus Networks, Inc. (Sonus) is a provider of networked solutions for communications service providers and enterprises to help them secure and unify their real-time communications infrastructures. The Company helps communications service providers and enterprises hold the session initiation protocol (SIP) and fourth generation (4G)/long term evolution (LTE)-based solutions, including voice over Internet protocol (VoIP), voice over wireless fidelity (VoWiFi), video and unified communications (UC) by securing and enabling Internet Protocol (IP) networks. Its products include session border controllers (SBCs), diameter signaling controllers (DSCs) and VoWiFi solutions. Sonus Products include Sonus GSX9000 Open Services Switch, Sonus T7000 Intelligent Switching System, Sonus Diameter Signaling Controllers, Sonus Signal Transfer Points, Sonus PSX Policy & Routing Server, Sonus WebRTC Services Solution, Sonus Network Management Solutions and Virtualized Mobile Core (VMC) Solution.
About Comtech Telecommunications Corp.
Comtech Telecommunications Corp. designs, develops, produces and markets products, systems and services for communications solutions. The Company operates through two segments: Commercial Solutions and Government Solutions. It offers communications solutions, including command and control technologies, safety and security technologies and enterprise technologies. Its Commercial Solutions segment provides satellite communications (such as satellite earth station modems and traveling wave tube amplifiers), public safety systems (such as next generation 911 technologies) and enterprise application technologies (such as messaging and trusted location-based technologies). The Government Solutions segment includes command and control technologies, troposcatter technologies, and radio frequency power and switching technologies. It serves system and network suppliers in the global satellite, defense, broadcast and aerospace industries, and the United States federal government, among others.
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