Contrasting Cabot Microelectronics (NASDAQ:CCMP) & SuperCom (NASDAQ:SPCB)

Cabot Microelectronics (NASDAQ:CCMP) and SuperCom (NASDAQ:SPCB) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Cabot Microelectronics and SuperCom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Microelectronics 0 0 5 0 3.00
SuperCom 0 0 1 0 3.00

Cabot Microelectronics currently has a consensus target price of $136.50, indicating a potential downside of 2.34%. SuperCom has a consensus target price of $2.50, indicating a potential upside of 245.21%. Given SuperCom’s higher probable upside, analysts plainly believe SuperCom is more favorable than Cabot Microelectronics.

Earnings and Valuation

This table compares Cabot Microelectronics and SuperCom’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cabot Microelectronics $590.12 million 6.88 $110.04 million $5.22 26.78
SuperCom $33.26 million 0.33 -$6.66 million N/A N/A

Cabot Microelectronics has higher revenue and earnings than SuperCom.

Risk and Volatility

Cabot Microelectronics has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, SuperCom has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

99.6% of Cabot Microelectronics shares are held by institutional investors. Comparatively, 18.2% of SuperCom shares are held by institutional investors. 2.2% of Cabot Microelectronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Cabot Microelectronics pays an annual dividend of $1.68 per share and has a dividend yield of 1.2%. SuperCom does not pay a dividend. Cabot Microelectronics pays out 32.2% of its earnings in the form of a dividend. Cabot Microelectronics has raised its dividend for 2 consecutive years.

Profitability

This table compares Cabot Microelectronics and SuperCom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabot Microelectronics 11.76% 21.77% 11.89%
SuperCom N/A N/A N/A

Summary

Cabot Microelectronics beats SuperCom on 13 of the 15 factors compared between the two stocks.

About Cabot Microelectronics

Cabot Microelectronics Corp. engages in the development, manufacture, and sale of chemical mechanical planarization consumables products. The firm offers chemical mechanical planarization slurries for polishing many of the conducting, insulating and isolating materials used in integrated circuit devices, and for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells chemical mechanical planarization polishing pads, which are used in conjunction with slurries in the chemical mechanical planarization process. The company was founded by William P. Noglows in October 1999 and is headquartered in Aurora, IL.

About SuperCom

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company offers MAGNA, a common platform for ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. Its PureRF suite is a solution based on radio-frequency identification (RFID) tag technology to identify, locate, track, monitor, count, and protect people and objects. The company's PureRF suite comprises PureRF tags, hands-free long-range RFID asset and Vehicle tags, PureRF readers, PureRF activators, and PureRF initializers. It also provides house arrest monitoring systems, PureTag RF bracelets, PureCom RF base stations, GPS offender tracking systems, PureTrack smartphone device, PureBeacon, PureMonitor offender electronic monitoring software, inmate monitoring systems, DoorGuard tracking station, and personnel tags. In addition, the company offers domestic violence victim protection systems; SuperPay, a mobile payment hybrid suite; and PowaPOS, an integrated design incorporating retail peripherals. Further, it provides Safend's Encryption Suite that protects the organization's sensitive data; and designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. The company serves healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, and building and access automation industries. SuperCom Ltd. sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives and resellers. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was founded in 1988 and is based in Herzliya, Israel.

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