Comparing CommScope (NASDAQ:COMM) and Anterix (NASDAQ:ATEX)

Anterix (NASDAQ:ATEX) and CommScope (NASDAQ:COMM) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Volatility & Risk

Anterix has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, CommScope has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.

Profitability

This table compares Anterix and CommScope’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anterix	-188.56%	-29.71%	-13.48%
CommScope	16.89%	-4.51%	1.68%

Valuation & Earnings

This table compares Anterix and CommScope”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anterix	$6.03 million	78.18	-$11.37 million	($0.63)	-40.02
CommScope	$4.21 billion	0.45	-$315.50 million	$2.73	3.18

Anterix has higher earnings, but lower revenue than CommScope. Anterix is trading at a lower price-to-earnings ratio than CommScope, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Anterix and CommScope, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anterix	0	0	1	1	3.50
CommScope	2	3	0	0	1.60

Anterix currently has a consensus target price of $67.00, indicating a potential upside of 165.77%. CommScope has a consensus target price of $4.88, indicating a potential downside of 43.90%. Given Anterix’s stronger consensus rating and higher possible upside, analysts clearly believe Anterix is more favorable than CommScope.

Insider and Institutional Ownership

87.7% of Anterix shares are held by institutional investors. Comparatively, 88.0% of CommScope shares are held by institutional investors. 45.6% of Anterix shares are held by insiders. Comparatively, 2.6% of CommScope shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

CommScope beats Anterix on 8 of the 15 factors compared between the two stocks.

About Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.

About CommScope

CommScope Holding Company, Inc. provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates through Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments. The CCS segment provides network solutions for indoor and outdoor network applications; and fiber optic and copper connectivity and cable solutions for use in telecommunications, cable television, residential broadband networks, data centers and business enterprises. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, wireless Spectrum management business and Comsearch products. The NICS segment offers indoor and outdoor Wi-Fi and long-term evolution (LTE) access points, access and aggregation switches; an Internet of Things suite, on-premises and cloud-based control and management systems; and software and software-as-a-service applications. The ANS segment offers cable modem termination systems, video infrastructure, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network. It offers its products and services through independent distributors, specialized resellers and distributors, wireless and wireline operators, original equipment manufacturers, and system integrators, as well as directly to customers. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is based in Claremont, North Carolina.