Critical Analysis: Elcom International (OTCMKTS:ELCO) and CommVault Systems (NASDAQ:CVLT)

Elcom International (OTCMKTS:ELCO) and CommVault Systems (NASDAQ:CVLT) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Elcom International has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, CommVault Systems has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Insider and Institutional Ownership

93.5% of CommVault Systems shares are held by institutional investors. 13.6% of Elcom International shares are held by company insiders. Comparatively, 1.0% of CommVault Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Elcom International and CommVault Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elcom International	N/A	N/A	N/A	N/A	N/A
CommVault Systems	$995.62 million	7.59	$76.11 million	$1.80	94.48

CommVault Systems has higher revenue and earnings than Elcom International.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Elcom International and CommVault Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elcom International	0	0	0	0	0.00
CommVault Systems	0	3	8	1	2.83

CommVault Systems has a consensus target price of $211.67, indicating a potential upside of 24.47%. Given CommVault Systems’ stronger consensus rating and higher possible upside, analysts clearly believe CommVault Systems is more favorable than Elcom International.

Profitability

This table compares Elcom International and CommVault Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elcom International	N/A	N/A	N/A
CommVault Systems	7.70%	30.83%	9.05%

Summary

CommVault Systems beats Elcom International on 10 of the 11 factors compared between the two stocks.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.

About CommVault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.