Comparing TESSCO Technologies (TESS) and UTStarcom Holdings Corp (UTSI)

TESSCO Technologies (NASDAQ: TESS) and UTStarcom Holdings Corp (NASDAQ:UTSI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Dividends

TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 6.2%. UTStarcom Holdings Corp does not pay a dividend. TESSCO Technologies pays out 320.0% 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

TESSCO Technologies has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, UTStarcom Holdings Corp has a beta of -0.3, meaning that its share price is 130% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for TESSCO Technologies and UTStarcom Holdings Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TESSCO Technologies 0 0 0 0 N/A
UTStarcom Holdings Corp 0 0 0 0 N/A

Insider & Institutional Ownership

58.7% of TESSCO Technologies shares are owned by institutional investors. Comparatively, 25.9% of UTStarcom Holdings Corp shares are owned by institutional investors. 26.9% of TESSCO Technologies shares are owned by company insiders. Comparatively, 2.7% of UTStarcom Holdings Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TESSCO Technologies and UTStarcom Holdings Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TESSCO Technologies $544.45 million 0.20 $7.18 million $0.25 51.60
UTStarcom Holdings Corp $80.18 million 1.27 $535,000.00 $0.02 144.07

TESSCO Technologies has higher revenue and earnings than UTStarcom Holdings Corp. TESSCO Technologies is trading at a lower price-to-earnings ratio than UTStarcom Holdings Corp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TESSCO Technologies and UTStarcom Holdings Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TESSCO Technologies 0.38% 2.36% 1.40%
UTStarcom Holdings Corp N/A N/A N/A

Summary

TESSCO Technologies beats UTStarcom Holdings Corp on 10 of the 13 factors compared between the two stocks.

TESSCO Technologies Company Profile

TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.

UTStarcom Holdings Corp Company Profile

UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.

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