Analyzing SeaChange International (SEAC) and Comtech Telecommunications (CMTL)

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

Earnings & Valuation

This table compares SeaChange International and Comtech Telecommunications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SeaChange International $80.27 million 1.35 $13.49 million $0.11 27.73
Comtech Telecommunications $550.37 million 1.34 $15.82 million $0.34 91.50

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

Volatility & Risk

SeaChange International has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Comtech Telecommunications has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Dividends

Comtech Telecommunications pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. SeaChange International does not pay a dividend. Comtech Telecommunications pays out 117.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares SeaChange International and Comtech Telecommunications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SeaChange International 16.82% 3.29% 2.08%
Comtech Telecommunications 4.87% 2.20% 1.26%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SeaChange International and Comtech Telecommunications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaChange International 0 0 3 0 3.00
Comtech Telecommunications 0 3 2 0 2.40

SeaChange International currently has a consensus target price of $4.25, suggesting a potential upside of 39.34%. Comtech Telecommunications has a consensus target price of $26.63, suggesting a potential downside of 14.42%. Given SeaChange International’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SeaChange International is more favorable than Comtech Telecommunications.

Institutional & Insider Ownership

77.6% of SeaChange International shares are owned by institutional investors. Comparatively, 88.3% of Comtech Telecommunications shares are owned by institutional investors. 2.9% of SeaChange International shares are owned by company insiders. Comparatively, 7.0% of Comtech Telecommunications shares are owned by company 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.

About SeaChange International

SeaChange International, Inc. provides multiscreen video, advertising, and premium over the top (OTT) video products and services that facilitate the aggregation, licensing, management, and distribution of video and television advertising content to cable system operators, satellite operators, and telecommunications and media companies worldwide. It offers video products, including SeaChange Adrenalin, a multiscreen back office platform that enables service providers to manage, monetize, and deliver a seamless viewing experience across televisions, personal computers (PCs), tablets, smartphones, and other IP-enabled devices; and SeaChange AssetFlow, a content management solution that is used to receive, manage, and publish content for viewing on televisions, tablets, PCs, and other consumer devices, as well as SeaChange Rave, an OTT video platform that provides managed services for media companies and service providers. The company also provides advertising products, such as SeaChange Infusion, an advanced advertising platform to maximize advertising revenue across multiscreen, broadcast, on-demand, and OTT viewing. In addition, it provides Nucleus, a video gateway software that ports to third-party set-top boxes, or other customer premises equipment hardware and system on a chip, as well as acts as a hub for various video distribution to any IP-connected device throughout the home, such as tablets, smart phones, and game consoles; and SeaChange NitroX, an user experience product that empower service providers and content owners to optimize live and on-demand video consumption on multiscreen and OTT services. Further, the company provides professional, and maintenance and support services, as well as managed services. It sells and markets its products and services through a direct sales organization, as well as to systems integrators and value-added resellers. SeaChange International, Inc. was founded in 1993 and is headquartered in Acton, Massachusetts.

About Comtech Telecommunications

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions. The company's Commercial Solutions segment provides ground-based equipment, such as single channel per carrier modems and solid state amplifiers that facilitate the transmission of voice, video, and data, as well as offers traveling wave tube amplifiers comprising high power narrow-band amplifiers that are used to amplify signals from satellite earth stations; and safety and security technology solutions that enable 911 c. This segment also offers enterprise application technologies, including location-based technology, such as Trusted Location, a software-based scoring system that allows providers to determine mobile location and identify fraudulent behavior and other security risks; Look4, an application that enables customers to build their own applications; Indoor Location, a solution that enables the determination of a cell phone user's geospatial position; text messaging platforms that are used by wireless carriers to provide short-messaging services and to communicate with 911 public safety answering points; and VirtuMedix, a digital health platform that enables virtual healthcare. The company's Government Solutions segment provides command and control technologies, including tactical communications, managed networks, logistics, and end-to-end integration; cyber security training and computer network operations; and satellite-based mobile communications and tracking systems. This segment also offers over-the-horizon microwave systems, such as equipment and systems that transmit digitized voice, video, and data; and solid state high power broadband amplifiers designed for radar, electronic warfare, jamming, medical, and aviation applications. The company serves commercial and government customers worldwide. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York.

Receive News & Ratings for SeaChange International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SeaChange International and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply