Franklin Wireless (NASDAQ:FKWL – Get Free Report) and Comtech Telecommunications (NASDAQ:CMTL – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Valuation & Earnings
This table compares Franklin Wireless and Comtech Telecommunications”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Wireless | $46.09 million | 0.62 | -$240,000.00 | ($0.06) | -40.33 |
| Comtech Telecommunications | $499.53 million | 0.08 | -$155.30 million | ($2.21) | -0.63 |
Profitability
This table compares Franklin Wireless and Comtech Telecommunications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Wireless | -2.07% | -2.98% | -2.16% |
| Comtech Telecommunications | -5.52% | 9.77% | 1.05% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Franklin Wireless and Comtech Telecommunications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Wireless | 1 | 0 | 1 | 0 | 2.00 |
| Comtech Telecommunications | 1 | 1 | 1 | 0 | 2.00 |
Franklin Wireless presently has a consensus target price of $6.00, suggesting a potential upside of 147.93%. Comtech Telecommunications has a consensus target price of $2.50, suggesting a potential upside of 79.86%. Given Franklin Wireless’ higher possible upside, analysts clearly believe Franklin Wireless is more favorable than Comtech Telecommunications.
Volatility & Risk
Franklin Wireless has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Comtech Telecommunications has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.
Insider and Institutional Ownership
18.5% of Franklin Wireless shares are held by institutional investors. 28.4% of Franklin Wireless shares are held by insiders. Comparatively, 2.2% of Comtech Telecommunications shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Franklin Wireless beats Comtech Telecommunications on 7 of the 12 factors compared between the two stocks.
About Franklin Wireless
Franklin Wireless Corp. provides integrated wireless solutions. The company's products include 5G/4G wireless broadband products, such as wi-fi mobile hotspot, fixed wireless routers, and enterprise gateway CPE; and IoT tracking and connected devices, including smart IoT tracking device, connected car, and home phone connect. It also offers IOT server platform and application, which comprises Pintrac, a cloud based telecom grade server platform; Pintrac Mobile Device Management, an LTE hotspot; Pintrac Pet, a pet tracking application; Pintrac Auto that tracks, locates, and manages vehicles for consumers and businesses; and JEXtream, a cloud based telecom grade server platform for 5G devices and routers that enables enhanced remote management of device functionality. The company directly markets and sells its products to wireless operators, as well as indirectly through strategic partners and distributors located primarily in the North America, the Caribbean and South America, and Asia. Franklin Wireless Corp. was founded in 1981 and is headquartered in San Diego, California.
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.
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