Wednesday, June 20, 2018

Contrasting Commscope (COMM) & Airgain (AIRG)

Commscope (NASDAQ: COMM) and Airgain (NASDAQ:AIRG) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Risk & Volatility

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Commscope has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Airgain has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.

Valuation and Earnings

This table compares Commscope and Airgain’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commscope $4.56 billion 1.25 $193.76 million $2.02 14.73
Airgain $49.52 million 1.78 $1.14 million $0.11 82.91

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

Analyst Ratings

This is a summary of current ratings for Commscope and Airgain, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commscope 0 4 6 0 2.60
Airgain 0 1 2 0 2.67

Commscope currently has a consensus price target of $37.75, suggesting a potential upside of 26.85%. Airgain has a consensus price target of $14.00, suggesting a potential upside of 53.51%. Given Airgain’s stronger consensus rating and higher possible upside, analysts clearly believe Airgain is more favorable than Commscope.


This table compares Commscope and Airgain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commscope 4.27% 24.08% 5.45%
Airgain -0.68% 1.58% 1.31%

Institutional and Insider Ownership

30.3% of Airgain shares are held by institutional investors. 3.4% of Commscope shares are held by company insiders. Comparatively, 20.4% of Airgain shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Commscope Company Profile

CommScope Holding Company, Inc. provides infrastructure solutions for communications networks worldwide. The company's CommScope Connectivity Solutions segment offers optical fiber and twisted pair structured cable solutions, intelligent infrastructure software, and network rack and cabinet enclosures under the SYSTIMAX, NETCONNECT, and Uniprise brands; and fiber management systems, patch cords and panels, pre-terminated fiber connectivity, complete cabling systems, and cable assemblies for use in offices and data centers. This segment also provides fiber optic connectivity solutions, including hardened connector systems, fiber distribution hubs and management systems, couplers and splitters, plug and play multiport service terminals, hardened optical terminating enclosures, high density cable assemblies, splices, and splice closures that supports video, voice, and high-speed data services provided by telecommunications operators and multi-system operators. Its CommScope Mobility Solutions segment offers macro cell site solutions for wireless tower sites and on rooftops, such as base station antennas, microwave antennas, hybrid fiber-feeder and power cables, coaxial cables, connectors, and filters; metro cell solutions for street poles and other urban structures comprising radio frequency delivery and connectivity solutions, equipment housing, and concealment; and small cell and distributed antenna system (DAS) solutions consisting of DAS and distributed cell solutions that allow wireless operators to enhance efficiency, and cellular coverage and capacity in network conditions. This segment provides its solutions under the Andrew brand. CommScope Holding Company, Inc. sells its products through a network of distributors, system integrators, and resellers. The company was formerly known as Cedar I Holding Company, Inc. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.

Airgain Company Profile

Airgain, Inc. designs, develops, and engineers antenna products for original equipment and design manufacturers, chipset vendors, and service providers worldwide. Its products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; ultra-embedded antennas; omnimax high performance external antennas; MaxBeam carrier class antennas; and SmartMax embedded antennas, as well as automotive, fleet, public safety, and M2M antennas. The company provides embedded antenna technologies to enable high performance wireless networking across a range of home, enterprise, automotive, and Internet of Things. As of December 31, 2017, it had 131 issued patents in the United States, 23 companion patents outside the United States, and 81 patent applications on file. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was founded in 1995 and is headquartered in San Diego, California.

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