Norsat International (NYSE: NSAT) and PC-Tel (NASDAQ:PCTI) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitabiliy, valuation, risk and earnings.
Earnings & Valuation
This table compares Norsat International and PC-Tel’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Norsat International | $36.72 million | 1.81 | $4.24 million | N/A | N/A |
| PC-Tel | $100.62 million | 1.20 | $3.72 million | ($1.01) | -7.26 |
Norsat International has higher revenue, but lower earnings than PC-Tel.
Analyst Recommendations
This is a summary of current recommendations and price targets for Norsat International and PC-Tel, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Norsat International | 0 | 0 | 0 | 0 | N/A |
| PC-Tel | 0 | 1 | 2 | 0 | 2.67 |
PC-Tel has a consensus price target of $8.33, suggesting a potential upside of 13.69%. Given PC-Tel’s higher probable upside, analysts clearly believe PC-Tel is more favorable than Norsat International.
Profitability
This table compares Norsat International and PC-Tel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Norsat International | 2.52% | 2.10% | 1.69% |
| PC-Tel | -16.11% | 1.99% | 1.73% |
Dividends
PC-Tel pays an annual dividend of $0.20 per share and has a dividend yield of 2.7%. Norsat International does not pay a dividend. PC-Tel pays out -19.8% of its earnings in the form of a dividend.
Insider and Institutional Ownership
71.2% of PC-Tel shares are held by institutional investors. 10.5% of PC-Tel shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
PC-Tel beats Norsat International on 9 of the 13 factors compared between the two stocks.
About Norsat International
Norsat International Inc. is a provider of communication solutions used by government organizations, militaries, transportation, resource and marine industry companies, news organizations, public safety search and rescue operators, and others. The Company operates through two segments: Sinclair Technologies and Satellite Communications. The Sinclair Technologies segment specializes in radio frequency (RF) antenna and filter products. The Satellite Communications segment provides over two categories of products: satellite terminals and microwave components. The Company’s solutions enable the transmission of data, audio and video for remote applications. The Company’s products and services include product design and development, production, distribution and infield support and service of fly-away satellite terminals, microwave components, antennas, RF conditioning products, maritime based satellite terminals and remote network connectivity solutions.
About PC-Tel
PCTEL, Inc. (PCTEL) delivers telecom solutions. The Company operates in two segments: Connected Solutions and RF Solutions. The RF Solutions segment develops and provides test equipment, software and engineering services for wireless networks. The Connected Solutions segment designs and delivers antennas and site solutions for wireless networks globally. PCTEL antennas and site solutions support networks across the world, including Supervisory Control and Data Acquisition (SCADA) for oil, gas and utilities, fleet management, industrial operations, healthcare, small cell and network timing deployment, defense, public safety, education and broadband access. Its SeeGull flex scanning receivers are used around the world for indoor and drive test applications, including baseline testing, acceptance testing, spectrum clearing, troubleshooting and network optimization. PCTEL provides wireless network testing, commissioning, optimization, design, integration and consulting services.
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