Veea (NASDAQ:VEEA – 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 businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Volatility and Risk
Veea has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Comtech Telecommunications has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.
Profitability
This table compares Veea and Comtech Telecommunications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veea | N/A | N/A | -41.65% |
| Comtech Telecommunications | -9.27% | 10.95% | 0.94% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veea | 1 | 0 | 0 | 0 | 1.00 |
| Comtech Telecommunications | 1 | 1 | 2 | 0 | 2.25 |
Comtech Telecommunications has a consensus target price of $3.62, suggesting a potential upside of 160.79%. Given Comtech Telecommunications’ stronger consensus rating and higher probable upside, analysts clearly believe Comtech Telecommunications is more favorable than Veea.
Earnings and Valuation
This table compares Veea and Comtech Telecommunications”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veea | $220,000.00 | 59.51 | -$6.66 million | ($5.20) | -0.81 |
| Comtech Telecommunications | $249.61 million | 0.17 | -$155.30 million | ($2.31) | -0.60 |
Veea has higher earnings, but lower revenue than Comtech Telecommunications. Veea is trading at a lower price-to-earnings ratio than Comtech Telecommunications, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
25.9% of Veea shares are owned by institutional investors. 60.8% of Veea shares are owned by company insiders. Comparatively, 2.2% of Comtech Telecommunications shares are owned by company 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
Comtech Telecommunications beats Veea on 9 of the 14 factors compared between the two stocks.
About Veea
Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.
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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