Head-To-Head Review: Gilat Satellite Networks (GILT) and CommScope Holding (COMM)

Gilat Satellite Networks (NASDAQ: GILT) and CommScope Holding (NASDAQ:COMM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

Gilat Satellite Networks has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, CommScope Holding has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Institutional and Insider Ownership

7.9% of Gilat Satellite Networks shares are held by institutional investors. Comparatively, 99.2% of CommScope Holding shares are held by institutional investors. 1.1% of Gilat Satellite Networks shares are held by insiders. Comparatively, 3.3% of CommScope Holding shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Gilat Satellite Networks and CommScope Holding’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gilat Satellite Networks $279.55 million 1.52 -$5.34 million $0.07 110.71
CommScope Holding $4.92 billion 1.31 $222.83 million $0.99 34.13

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

Profitability

This table compares Gilat Satellite Networks and CommScope Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gilat Satellite Networks 1.27% 6.59% 3.70%
CommScope Holding 4.21% 29.11% 5.97%

Analyst Recommendations

This is a summary of current ratings for Gilat Satellite Networks and CommScope Holding, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gilat Satellite Networks 0 0 0 0 N/A
CommScope Holding 0 5 7 0 2.58

CommScope Holding has a consensus target price of $40.78, suggesting a potential upside of 20.68%. Given CommScope Holding’s higher possible upside, analysts clearly believe CommScope Holding is more favorable than Gilat Satellite Networks.

Summary

CommScope Holding beats Gilat Satellite Networks on 11 of the 13 factors compared between the two stocks.

Gilat Satellite Networks Company Profile

Gilat Satellite Networks Ltd. is a provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-Move/on-the-Pause terminals and modems. The Company’s equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations and enterprises.

CommScope Holding Company Profile

CommScope Holding Company, Inc. (CommScope) is a provider of infrastructure solutions for the core, access and edge layers of communications networks. The Company operates through two segments: CommScope Connectivity Solutions (CCS) and CommScope Mobility Solutions (CMS). Its portfolio includes wireless and fiber optic solutions. The Company’s solutions are found in the venues and outdoor spaces, including in data centers and buildings of all shapes, sizes and complexities; at wireless cell sites; in telecom central offices and cable head ends; in fiber-to-the-X (FTTX) deployments, and in airports, trains and tunnels. As of December 31, 2016, it served customers in over 100 countries through a network of more than 30 manufacturing and distribution facilities located around the globe. Its customers include global telecommunication operators and enterprise customers, including Fortune 500 enterprises and multi-system operators (MSOs).

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