Contrasting Technical Communications (TCCO) and Sierra Wireless (SWIR)
Technical Communications (NASDAQ:TCCO) and Sierra Wireless (NASDAQ:SWIR) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Valuation & Earnings
This table compares Technical Communications and Sierra Wireless’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Technical Communications||$4.21 million||1.46||-$1.42 million||N/A||N/A|
|Sierra Wireless||$692.08 million||0.83||$4.13 million||$0.58||27.53|
This is a breakdown of recent ratings and target prices for Technical Communications and Sierra Wireless, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sierra Wireless has a consensus price target of $23.22, suggesting a potential upside of 45.41%. Given Sierra Wireless’ higher probable upside, analysts clearly believe Sierra Wireless is more favorable than Technical Communications.
Risk and Volatility
Technical Communications has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Sierra Wireless has a beta of 2.67, meaning that its stock price is 167% more volatile than the S&P 500.
Institutional and Insider Ownership
2.1% of Technical Communications shares are owned by institutional investors. Comparatively, 28.6% of Sierra Wireless shares are owned by institutional investors. 25.7% of Technical Communications shares are owned by company insiders. Comparatively, 2.0% of Sierra Wireless shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Technical Communications and Sierra Wireless’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Sierra Wireless beats Technical Communications on 9 of the 11 factors compared between the two stocks.
Technical Communications Company Profile
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.
Sierra Wireless Company Profile
Sierra Wireless, Inc., together with its subsidiaries, engages in building the Internet of Things (IoT) with intelligent wireless solutions in North America, Europe, and the Asia Pacific. It operates in three segments: Original Equipment Manufacturer (OEM) Solutions, Enterprise Solutions, and Cloud and Connectivity Services. The OEM Solutions segment offers embedded cellular modules, short range wireless modules, software, and tools to integrate wireless connectivity into various products and solutions for OEM customers, including the embedded wireless modules product portfolio; and Legato, an open source, Linux-based application framework. This segment provides its products and solutions to a range of industries, including automotive, transportation, enterprise networking, energy, sales and payment, mobile computing, security, industrial monitoring, field services, residential, healthcare, and other industries. It also offers professional services to OEM customers during their product development and launch process. The Enterprise Solutions segment provides a range of second, third, and fourth generation LTE intelligent cellular routers and gateways, as well as security and device management solutions, and professional services to public safety, transportation field service, energy, industrial, retail, and financial enterprises. The Cloud and Connectivity Services segment provides secure and scalable cloud based platform for deploying and managing IoT subscriptions, devices, data, and applications; connectivity services, which include smart SIM and core network platforms; and managed broadband cellular services. Sierra Wireless, Inc. sells its products directly, as well as through various indirect channels, such as OEMs, distributors, value added resellers, and hardware vendors, as well as SIM vendors and mobile network operators. The company was founded in 1993 and is headquartered in Richmond, Canada.
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