Vocera Communications (NYSE: VCRA) and TESSCO Technologies (NASDAQ:TESS) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
This table compares Vocera Communications and TESSCO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Vocera Communications has a beta of -0.42, indicating that its share price is 142% less volatile than the S&P 500. Comparatively, TESSCO Technologies has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Earnings and Valuation
This table compares Vocera Communications and TESSCO Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vocera Communications||$127.70 million||6.52||-$17.26 million||($0.95)||-30.00|
|TESSCO Technologies||$533.29 million||0.28||$1.44 million||$0.34||52.50|
TESSCO Technologies has higher revenue and earnings than Vocera Communications. Vocera Communications is trading at a lower price-to-earnings ratio than TESSCO Technologies, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Vocera Communications and TESSCO Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vocera Communications currently has a consensus target price of $32.83, suggesting a potential upside of 15.20%. Given Vocera Communications’ higher possible upside, equities research analysts plainly believe Vocera Communications is more favorable than TESSCO Technologies.
Institutional and Insider Ownership
58.3% of TESSCO Technologies shares are owned by institutional investors. 6.3% of Vocera Communications shares are owned by insiders. Comparatively, 26.9% of TESSCO 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.
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. Vocera Communications does not pay a dividend. TESSCO Technologies pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
TESSCO Technologies beats Vocera Communications on 10 of the 14 factors compared between the two stocks.
About Vocera Communications
Vocera Communications, Inc. is a provider of communication solutions for mobile workers in healthcare, hospitality, energy, education and other industries. The Company’s segments include Product and Service. The Company’s solutions include the Vocera Communication System, Vocera Care Experience, Vocera Engage integration platform, smartphone applications and its Experience Innovation Network. The Company’s Vocera Communication System consists of a software platform that connects communication devices, including its hands-free, wearable, voice-controlled communication badges, and third-party mobile devices that use its software applications to become part of the Vocera system. Its Vocera Collaboration Suite combines calling, texting, alerting and content distribution capabilities of Vocera into a smartphone application. Its Vocera Secure Texting is an alternative to non-secure short message service (SMS) texting.
About TESSCO Technologies
TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.
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