Comparing Casa Systems (CASA) & Technical Communications (TCCO)

Casa Systems (NASDAQ:CASA) and Technical Communications (NASDAQ:TCCO) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Casa Systems and Technical Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casa Systems 0 2 6 0 2.75
Technical Communications 0 0 0 0 N/A

Casa Systems presently has a consensus target price of $20.14, suggesting a potential upside of 29.29%. Given Casa Systems’ higher probable upside, analysts clearly believe Casa Systems is more favorable than Technical Communications.

Profitability

This table compares Casa Systems and Technical Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Casa Systems 17.93% 109.09% 17.73%
Technical Communications -13.57% -19.08% -17.00%

Earnings and Valuation

This table compares Casa Systems and Technical Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casa Systems $351.58 million 3.83 $88.50 million $0.79 19.72
Technical Communications $4.21 million 1.54 -$1.42 million N/A N/A

Casa Systems has higher revenue and earnings than Technical Communications.

Institutional & Insider Ownership

61.7% of Casa Systems shares are held by institutional investors. Comparatively, 1.2% of Technical Communications shares are held by institutional investors. 65.2% of Casa Systems shares are held by insiders. Comparatively, 25.7% of Technical Communications shares are held 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.

Summary

Casa Systems beats Technical Communications on 10 of the 10 factors compared between the two stocks.

About Casa Systems

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers software-centric infrastructure solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts.

About Technical Communications

Technical Communications Corporation designs, develops, manufactures, distributes, markets, and sells communications security devices, systems, and services worldwide. The company primarily provides voice, data, and fax, and voice networks. Its products include government systems, such as DSD 72A-SP military bulk encryptor, CSD 3324 SE telephone/fax encryptor, and the DSP 9000 radio encryption system, as well as the HSE 6000 squad radio headset and telephone encryptor for public safety special operations land mobile radio applications and for military applications. The company also provides secure office systems, such as CSD 4100 executive secure telephone and CipherTalk 8500 Internet protocol (IP)-based secure wireless phone. In addition, it offers network security systems comprising network encryption systems with KEYNET centralized key and device management for IP, SONET/SDH, and frame relay networks to secure data in transit from local area network to local area network and across wide area networks. The company's products are used to protect confidentiality in communications between radios, telephones, mobile phones, facsimile machines, and data network equipment over wires, fiber optic cables, radio waves, and microwave and satellite links. It serves various markets, including foreign and domestic governmental agencies, law enforcement and military agencies, telecommunications carriers, financial institutions, and multinational companies requiring protection of mission-critical information. The company sells directly to customers, original equipment manufacturers, and value-added resellers using its in-house sales force, as well as domestic and international representatives, consultants, and distributors. Technical Communications Corporation was founded in 1961 and is headquartered in Concord, Massachusetts.

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