Head to Head Analysis: Comtech Telecommunications (NASDAQ:CMTL) vs. Extreme Networks (NASDAQ:EXTR)

Extreme Networks (NASDAQ:EXTR) and Comtech Telecommunications (NASDAQ:CMTL) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Valuation & Earnings

This table compares Extreme Networks and Comtech Telecommunications”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extreme Networks	$1.28 billion	2.31	$42.12 million	$0.31	73.39
Comtech Telecommunications	$499.53 million	0.10	-$155.30 million	($2.21)	-0.78

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

Risk & Volatility

Extreme Networks has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Comtech Telecommunications has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Extreme Networks and Comtech Telecommunications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extreme Networks	3.28%	88.88%	6.32%
Comtech Telecommunications	-5.52%	9.77%	1.05%

Analyst Ratings

This is a summary of current recommendations and price targets for Extreme Networks and Comtech Telecommunications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extreme Networks	1	1	7	0	2.67
Comtech Telecommunications	1	1	1	0	2.00

Extreme Networks presently has a consensus target price of $32.25, suggesting a potential upside of 41.76%. Comtech Telecommunications has a consensus target price of $2.50, suggesting a potential upside of 44.93%. Given Comtech Telecommunications’ higher possible upside, analysts clearly believe Comtech Telecommunications is more favorable than Extreme Networks.

Insider and Institutional Ownership

91.0% of Extreme Networks shares are owned by institutional investors. 3.6% of Extreme Networks shares are owned by insiders. Comparatively, 2.2% of Comtech Telecommunications 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.

Summary

Extreme Networks beats Comtech Telecommunications on 13 of the 14 factors compared between the two stocks.

About Extreme Networks

Extreme Networks, Inc. delivers cloud-driven networking solutions that leverage the powers of machine learning, artificial intelligence, analytics, and automation.
The company designs, develops, and manufactures wired and wireless network infrastructure equipment and develops the software for network management, policy, analytics, security, and access controls. Over 50,000 customers globally trust their end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts.

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.