CommScope (NASDAQ:COMM) & InterCloud Systems (OTCMKTS:ICLD) Critical Contrast

CommScope (NASDAQ:COMM) and InterCloud Systems (OTCMKTS:ICLD) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares CommScope and InterCloud Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CommScope	16.89%	-4.51%	1.68%
InterCloud Systems	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for CommScope and InterCloud Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CommScope	2	4	0	0	1.67
InterCloud Systems	0	0	0	0	0.00

CommScope presently has a consensus price target of $4.88, indicating a potential downside of 33.13%. Given InterCloud Systems’ higher possible upside, analysts clearly believe InterCloud Systems is more favorable than CommScope.

Valuation & Earnings

This table compares CommScope and InterCloud Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CommScope	$4.42 billion	0.36	-$315.50 million	$2.73	2.67
InterCloud Systems	N/A	N/A	N/A	N/A	N/A

InterCloud Systems has lower revenue, but higher earnings than CommScope.

Insider & Institutional Ownership

88.0% of CommScope shares are owned by institutional investors. 2.1% of CommScope shares are owned by insiders. Comparatively, 0.5% of InterCloud Systems shares are owned 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.

Summary

CommScope beats InterCloud Systems on 6 of the 8 factors compared between the two stocks.

About CommScope

CommScope Holding Company, Inc. provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates through Connectivity and Cable Solutions (CCS); Outdoor Wireless Networks (OWN); Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments. The CCS segment provides network solutions for indoor and outdoor network applications; and fiber optic and copper connectivity and cable solutions for use in telecommunications, cable television, residential broadband networks, data centers and business enterprises. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, wireless Spectrum management business and Comsearch products. The NICS segment offers indoor and outdoor Wi-Fi and long-term evolution (LTE) access points, access and aggregation switches; an Internet of Things suite, on-premises and cloud-based control and management systems; and software and software-as-a-service applications. The ANS segment offers cable modem termination systems, video infrastructure, distribution and transmission equipment and cloud solutions that enable facility-based service providers to construct a state-of-the-art residential and metro distribution network. It offers its products and services through independent distributors, specialized resellers and distributors, wireless and wireline operators, original equipment manufacturers, and system integrators, as well as directly to customers. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is based in Claremont, North Carolina.

About InterCloud Systems

InterCloud Systems, Inc. provides networking orchestration and automation for software-defined networking (SDN) and network function virtualization environments to telecommunications service provider and corporate enterprise markets in the United States and internationally. It operates through two segments, Applications and Infrastructure and Professional Services. The Applications and Infrastructure segment provides applications and services, including SDN training, SDN software development and integration, and vertical network function validation; and cabling and other field installations, as well as designs, engineers, installs, and maintains various types of Wi-Fi and DAS networks to enterprise customers. The Professional Services segment engages in the design and deployment of SDN and software-defined wide area networking solutions for enterprise and carrier accounts. The company was incorporated in 1999 and is based in Boca Raton, Florida.