Telecommunications

Critical Review: Comtech Telecommunications (NASDAQ: CMTL) vs. Ubiquiti (NASDAQ: UI)


Comtech Telecommunications (NASDAQ:CMTL – Get Rating) and Ubiquiti (NASDAQ:UI – Get Rating) are both IT and technology companies, but which is the better stock? We’ll compare the two companies based on earnings strength, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

88.7% of Comtech Telecommunications shares are held by institutional investors. Comparatively, 5.9% of Ubiquiti’s shares are held by institutional investors. 5.8% of Comtech Telecommunications shares are held by insiders. Comparatively, 90.1% of Ubiquiti’s shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Comtech Telecommunications and Ubiquiti.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Comtech Telecommunications $581.70 million 0.66 -73.48 million dollars ($1.01) -2:40 p.m.
Ubiquitous $1.90 billion 9.39 $616.58 million $8.55 33.88

Ubiquiti has higher revenues and profits than Comtech Telecommunications. Comtech Telecommunications trades at a lower price-to-earnings ratio than Ubiquiti, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

Comtech Telecommunications has a beta of 1.56, which means its stock price is 56% more volatile than the S&P 500. Comparatively, Ubiquiti has a beta of 1.44, which means its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Comtech Telecommunications and Ubiquiti.

Net margins Return on equity return on assets
Comtech Telecommunications -3.77% 1.72% 0.84%
Ubiquitous 29.21% -57,441.32% 58.25%

Analyst Notes

This is a breakdown of recent ratings and price targets for Comtech Telecommunications and Ubiquiti, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Comtech Telecommunications 0 2 1 0 2.33
Ubiquitous 0 0 0 0 N / A

Comtech Telecommunications currently has a consensus target price of $27.50, indicating a potential upside of 89.13%. Given the likely higher upside of Comtech Telecommunications, equity research analysts clearly believe that Comtech Telecommunications is more favorable than Ubiquiti.

Dividends

Comtech Telecommunications pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. Ubiquiti pays an annual dividend of $2.40 per share and has a dividend yield of 0.8%. Comtech Telecommunications distributes -39.6% of its profits as a dividend. Ubiquiti pays 28.1% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Comtech Telecommunications is clearly the best dividend stock, given its higher yield and lower payout ratio.

Summary

Ubiquiti beats Comtech Telecommunications on 8 of the 15 factors compared between the two stocks.

Company Profile Comtech Telecommunications (Get an evaluation)

Comtech Telecommunications Corp., together with its subsidiaries, designs, develops, produces and markets products, systems and services for communications solutions in the United States and internationally. It operates in two segments, Commercial Solutions and Government Solutions. The Business Solutions segment offers satellite ground station technologies, including single channel per carrier and time division multiple access modems, amplifiers, frequency converters and network software for modulating, demodulating and amplify signals, as well as to transport voice, video and/or data over networks; and public safety and location-based technologies, such as 911 call handling and mapping solutions that enable mobile carriers and voice-over-internet carriers to route emergency calls to call centers in public safety emergency. The Government Solutions segment provides tactical satellite networks, such as satellite modems, hardened routers and solid state drives; secret internet protocol router and unclassified internet protocol router access point support services; and small aperture terminals. This segment also offers high-performance transmission technologies that are used in communications systems including electronic warfare, radar, and identification friend or foe (IFF); tropospheric scatter technologies for satellite communications; and high power radio frequency microwave amplifiers and associated switching control technologies that are used in electronic warfare, communications, radar, IFF and medical applications. The company serves satellite system integrators, wireless and other communication service providers, satellite broadcasters, prime contractors and system suppliers, medical equipment companies, aviation industry system integrators , oil companies and national and international defense and government customers, as well as end customers. . Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York.

Ubiquiti Company Profile (Get an evaluation)

Ubiquiti Inc. develops networking technology for service providers, enterprises and consumers. It develops technology platforms for distributed high-capacity Internet access, unified information technology and consumer electronics for business, home and personal use. Its service provider product platforms offer carrier-grade network infrastructure for fixed wireless broadband, wireless backhaul systems and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways and other WLAN products, as well as consumer products under the brand Ubiquiti Labs. The company also provides technology platforms, such as airMAX, which include proprietary protocols containing technologies to minimize signal noise; EdgeMAX, a software and system routing platform; airFiber, a point-to-point radio system; and UFiber GPON, an off-the-shelf fiber networking technology for creating high-speed fiber Internet networks. Additionally, it offers UniFi -Enterprise WLAN, an enterprise Wi-Fi system that allows onsite and remote management via the cloud; UniFi Protect, a video surveillance system, which provides statistical reports and advanced analysis; UniFi switch that delivers the performance, switching, and power of Ethernet support for enterprise networks; UniFi Console, an enterprise-class router and security gateway appliance; and UniFi Access, a door access system. In addition, offers base stations, radios, backhaul equipment and customer premises equipment; integrated radio products; antennae; and Power over Ethernet mounting brackets, cables and adapters. It serves its customers through a network of approximately 100 distributors, online retailers and directly to customers worldwide. The company was formerly known as Ubiquiti Networks, Inc. and changed its name to Ubiquiti Inc. in August 2019. Ubiquiti Inc. was incorporated in 2003 and is headquartered in New York, New York.



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