COMARCO (OTCMKTS:CMRO) and Harmonic (NASDAQ:HLIT) are both small-cap construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Earnings & Valuation

This table compares COMARCO and Harmonic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
COMARCO N/A N/A $840,000.00 N/A N/A
Harmonic $403.56 million 1.50 -$21.03 million $0.03 225.33

COMARCO has higher earnings, but lower revenue than Harmonic.

Analyst Ratings

This is a breakdown of recent recommendations for COMARCO and Harmonic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
COMARCO 0 0 0 0 N/A
Harmonic 0 0 5 0 3.00

Harmonic has a consensus target price of $9.31, suggesting a potential upside of 37.76%. Given Harmonic’s higher probable upside, analysts plainly believe Harmonic is more favorable than COMARCO.

Volatility & Risk

COMARCO has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Harmonic has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

90.0% of Harmonic shares are owned by institutional investors. 23.0% of COMARCO shares are owned by insiders. Comparatively, 6.4% of Harmonic 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.

Profitability

This table compares COMARCO and Harmonic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
COMARCO N/A N/A N/A
Harmonic -7.27% -3.72% -1.60%

Summary

COMARCO beats Harmonic on 6 of the 10 factors compared between the two stocks.

About COMARCO

Comarco, Inc. focuses on the monetization of its patent portfolio. The company intends to expand, protect, and monetize its patent portfolio through potential sale or licensing. Comarco, Inc. was founded in 1960 and is headquartered in Laguna Niguel, California.

About Harmonic

Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide. Its products enable customers to create, prepare, and deliver a range of video and broadband services to consumer devices, including televisions, personal computers, laptops, tablets, and smart phones. The company operates in two segments, Video and Cable Access. The Video segment sells video processing, and production and playout solutions and services to cable operators, and satellite and telecommunications Pay-TV service providers, as well as to broadcast and media, including streaming media companies. This segment's video processing solutions include network management and application software, and hardware products, such as cloud media processing, broadcast and over-the-top encoders, contribution encoders, high-density transcoders and stream processing, multiscreen delivery, decoders and descramblers, and video servers. This segment also provides video-optimized storage systems; and unified video playout and processing software-as-a-service solutions. The Cable Access segment offers cable edge solutions and related services, including CableOS software-based cable access solutions; and narrowcast services gateway products primarily to cable operators. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, program management, technical design and planning, building and site preparation, integration and equipment installation, system testing, and training. Harmonic Inc. sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was founded in 1988 and is headquartered in San Jose, California.

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