Critical Survey: Comtech Telecommunications (NASDAQ:CMTL) vs. Sonim Technologies (NASDAQ:SONM)

Comtech Telecommunications (NASDAQ:CMTL) and Sonim Technologies (NASDAQ:SONM) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Comtech Telecommunications and Sonim Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comtech Telecommunications	0	0	1	0	3.00
Sonim Technologies	0	0	0	0	0.00

Comtech Telecommunications currently has a consensus target price of $6.00, suggesting a potential upside of 198.51%. Given Comtech Telecommunications’ stronger consensus rating and higher probable upside, research analysts clearly believe Comtech Telecommunications is more favorable than Sonim Technologies.

Volatility and Risk

Comtech Telecommunications has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Sonim Technologies has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Profitability

This table compares Comtech Telecommunications and Sonim Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comtech Telecommunications	-51.28%	-15.38%	-3.34%
Sonim Technologies	-53.77%	-1,627.75%	-73.19%

Insider and Institutional Ownership

3.3% of Sonim Technologies shares are owned by institutional investors. 2.1% of Comtech Telecommunications shares are owned by insiders. Comparatively, 49.8% of Sonim Technologies shares are owned by 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.

Valuation and Earnings

This table compares Comtech Telecommunications and Sonim Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comtech Telecommunications	$540.40 million	0.11	-$99.99 million	($10.02)	-0.20
Sonim Technologies	$58.30 million	0.16	-$33.65 million	($2.93)	-0.18

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

About Comtech Telecommunications

Comtech Telecommunications Corp., together with its subsidiaries, engages in the provision of next-gen telecommunication solutions in the United States and internationally. The company’s Satellite and Space Communications segment offers satellite ground station technologies, services and system integration that facilitates the transmission of voice, video, and data over GEO, MEO and LEO satellite constellations, including solid-state and traveling wave tube power amplifiers, modems, VSAT platforms, and frequency converters; and satellite communications and tracking antenna systems, including high precision full motion fixed and mobile X/Y tracking antennas, RF feeds, reflectors, and radomes. This segment also provides over-the-horizon microwave troposcatter equipment that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction, including the Comtech; and solid-state, RF microwave high-power amplifiers and control components designed for radar, electronic warfare, data link, medical and aviation applications, as well as engages in the procurement and supply chain management of electrical, electronic, and electromechanical parts for satellite, launch vehicle, and manned space applications. Its Terrestrial and Wireless Networks segment offers next generation 911 solutions, which includes emergency call routing, location validation, policy-based routing rules, logging, and security functionality; emergency services IP network transport infrastructure for emergency services communications and support; call handling applications for public safety answering points; wireless emergency alerts solutions for network operators; and software and equipment for location-based and text messaging services for various applications including for public safety, commercial, and government services. The company was founded in 1967 and is headquartered in Melville, New York.

About Sonim Technologies

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. The company offers ruggedized mobile phones, such as Sonim XP10, Sonim XP5plus, Sonim XP3plus, and Sonim XP Pro; Sonim mobile hotspot; industrial-grade accessories. It sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada; and sells wireless carrier channels through distribution channels in North America and Europe. The company serves transportation and logistics, construction, manufacturing, facilities management, energy and utility, mining, and public safety sectors. The company was formerly known as NaviSpin.com, Inc. and changed its name to Sonim Technologies, Inc. in December 2001. Sonim Technologies, Inc. was incorporated in 1999 and is headquartered in San Diego, California.