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COMM vs GLW: Which Communications Stock is a Better Buy Now?
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Key Takeaways
COMM showcases major DOCSIS 4.0 speed gains and strong ANS momentum with 77% year-over-year growth.
GLW sees rising traction in Optical Communications as hyperscalers expand AI-driven data-center needs.
Both firms report improving 2025 sales and EPS estimates amid growing demand trends.
Corning Incorporated (GLW - Free Report) and CommScope Holding Company, Inc. (COMM - Free Report) are major players in the communications components industry. Corning is one of the leading manufacturers of cables, optical and copper connectivity products. Moreover, its leading-edge glass technologies are used in multiple verticals such as consumer electronics, automotive, healthcare and others.
CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company has created a niche market for itself, helping customers scale network capacity, delivering better network response time and performance, and simplifying technology migration.
The communications component market is expected to grow at a substantial rate in the upcoming years, backed by AI data center expansion, 5G and fiber rollout and growing demand for several high-bandwidth intensive applications. With strong industry expertise, both Corning and CommScope are well-positioned to capitalize on this emerging market trend. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for Corning
Corning is witnessing healthy traction across multiple end markets. Its Optical Communications segment has been a major growth driver over the past few quarters. Organizations across industries are increasingly using high-bandwidth intensive cloud and AI applications. Hyperscalers are scaling out GPU clusters with a higher number of connected AI nodes to support the surging AI workloads. These expanding data centers need an efficient network architecture. As the leading provider of fiber, cable and multi-fiber connectors, Corning is well-positioned to support its hyperscale client base.
However, Corning faces strong competition from CommScope and Amphenol Corporation (APH - Free Report) in the optical communications. The growing use of AI and machine learning applications is driving demand for Amphenol’s high-speed power and fiber optic interconnect solutions.
The company’s high-density Gen AI fiber and cable system, which allows customers to fit anywhere from 2 to 4x the amount of fiber into their existing conduit, is also gaining market traction, as hyperscalers expand their data center footprint. The company also boasts a leadership position in semiconductor polysilicon. It will strengthen GLW’s position in the U.S. domestic solar supply chain.
Corning’s premium glass innovations have gained solid momentum in the premium smartphone segment. Collaboration with major smartphone manufacturers, such as Apple, Samsung and Xiaomi, is boosting commercial prospects.
Corning’s end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Moreover, Corning’s Since the Display Technologies and Specialty Materials segments are largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this further narrows down the market. Corning’s extensive presence in China is a major concern. Sino-U.S. trade hostilities and the imposition of tariffs can impact GLW’s operations. High customer concentration is another major concern.
The Case for CommScope
COMM’s strength lies in its strong focus on innovation. During the third quarter, CommScope demonstrated an impressive downstream speed of 16.25 gigabits per second across 2 DOCSIS 4.0 modems. Using a single DOCSIS 4.0 modem, the company demonstrated a downstream speed of 9.4 gigabits. Such achievement demonstrates that a DOCSIS 4.0 network can compete with the network speed of a fiber home broadband network.
Continuous deployment of DOCSIS 4.0 amplifier and node products is driving growth in the ANS segment. The ANS segment reported a 77% growth year over year. CommScope’s DOCSIS 4.0 FDX amplifiers feature an AI-driven management core. This feature facilitates auto-detection and correction of networks in real time, ensuring consistent performance and reliability to end users.
Strong demand for WiFi 7 products and subscription services is also driving growth in the RUCKUS segment. Large private ventures are steadily deploying COMM’s T670 outdoor Wi-Fi access points. Moreover, the company has secured U.S. federal government certification, enabling sales to government agencies. These factors are expected to drive growth in the upcoming quarters.
CommScope’s RUCKUS network recently introduced the RUCKUS MDU (Multi-Dwelling Unit) suite. The integrated RUCKUS DSE AI assistant and Wi-Fi 7 access points ensure intelligent network management, low latency and high reliability. Strong focus on innovation and portfolio expansion gives it a competitive edge over other industry leaders such as Amphenol, Ubiquiti and Corning.
Despite fierce competition in each of its served markets, the company was able to hold on to its large customer base. A worldwide salesforce and extensive network of channel partners, including independent distributors, system integrators and value-added resellers, enable CommScope to efficiently serve its broad customer base across 100 countries. Enterprises like Charter Communications, Inc., Comcast Corporation, Cox Communications, Rogers Communication Inc., National Broadband Network Company Limited and more rely on COMM’s product suite to advance their network infrastructure.
How Do Zacks Estimates Compare for COMM & GLW?
The Zacks Consensus Estimate for CommScope’s 2025 sales implies year-over-year growth of 17.18% while EPS is projected at $1.64 per share against a loss of 3 cents a year ago. The EPS estimates for 2025 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Corning’s 2025 sales implies year-over-year growth of 12.99%, while that of EPS is projected at $2.52 per share compared to $1.96 per share a year ago. The EPS estimates for 2025 have increased over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of COMM & GLW
Over the past year, CommScope has gained 248% compared with the industry’s growth of 120.3%. Corning has gained 94.6% over the same period.
Image Source: Zacks Investment Research
CommScope looks more attractive than Corning from a valuation standpoint. Going by the price/sales ratio, COMM’s shares currently trade at 0.71 forward sales, significantly lower than Corning’s 4.47.
Both companies are steadily expanding their portfolio offerings to tap into emerging market opportunities related to fiber expansions, 5G adoption, consumer electronics and AI data centers. Both companies are showing consistent upward estimate revisions. However, with a Zacks Rank #1, attractive valuation and better price performance, CommScope appears to be a better investment option right now.
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COMM vs GLW: Which Communications Stock is a Better Buy Now?
Key Takeaways
Corning Incorporated (GLW - Free Report) and CommScope Holding Company, Inc. (COMM - Free Report) are major players in the communications components industry. Corning is one of the leading manufacturers of cables, optical and copper connectivity products. Moreover, its leading-edge glass technologies are used in multiple verticals such as consumer electronics, automotive, healthcare and others.
CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company has created a niche market for itself, helping customers scale network capacity, delivering better network response time and performance, and simplifying technology migration.
The communications component market is expected to grow at a substantial rate in the upcoming years, backed by AI data center expansion, 5G and fiber rollout and growing demand for several high-bandwidth intensive applications. With strong industry expertise, both Corning and CommScope are well-positioned to capitalize on this emerging market trend. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for Corning
Corning is witnessing healthy traction across multiple end markets. Its Optical Communications segment has been a major growth driver over the past few quarters. Organizations across industries are increasingly using high-bandwidth intensive cloud and AI applications. Hyperscalers are scaling out GPU clusters with a higher number of connected AI nodes to support the surging AI workloads. These expanding data centers need an efficient network architecture. As the leading provider of fiber, cable and multi-fiber connectors, Corning is well-positioned to support its hyperscale client base.
However, Corning faces strong competition from CommScope and Amphenol Corporation (APH - Free Report) in the optical communications. The growing use of AI and machine learning applications is driving demand for Amphenol’s high-speed power and fiber optic interconnect solutions.
The company’s high-density Gen AI fiber and cable system, which allows customers to fit anywhere from 2 to 4x the amount of fiber into their existing conduit, is also gaining market traction, as hyperscalers expand their data center footprint. The company also boasts a leadership position in semiconductor polysilicon. It will strengthen GLW’s position in the U.S. domestic solar supply chain.
Corning’s premium glass innovations have gained solid momentum in the premium smartphone segment. Collaboration with major smartphone manufacturers, such as Apple, Samsung and Xiaomi, is boosting commercial prospects.
Corning’s end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Moreover, Corning’s Since the Display Technologies and Specialty Materials segments are largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this further narrows down the market. Corning’s extensive presence in China is a major concern. Sino-U.S. trade hostilities and the imposition of tariffs can impact GLW’s operations. High customer concentration is another major concern.
The Case for CommScope
COMM’s strength lies in its strong focus on innovation. During the third quarter, CommScope demonstrated an impressive downstream speed of 16.25 gigabits per second across 2 DOCSIS 4.0 modems. Using a single DOCSIS 4.0 modem, the company demonstrated a downstream speed of 9.4 gigabits. Such achievement demonstrates that a DOCSIS 4.0 network can compete with the network speed of a fiber home broadband network.
Continuous deployment of DOCSIS 4.0 amplifier and node products is driving growth in the ANS segment. The ANS segment reported a 77% growth year over year. CommScope’s DOCSIS 4.0 FDX amplifiers feature an AI-driven management core. This feature facilitates auto-detection and correction of networks in real time, ensuring consistent performance and reliability to end users.
Strong demand for WiFi 7 products and subscription services is also driving growth in the RUCKUS segment. Large private ventures are steadily deploying COMM’s T670 outdoor Wi-Fi access points. Moreover, the company has secured U.S. federal government certification, enabling sales to government agencies. These factors are expected to drive growth in the upcoming quarters.
CommScope’s RUCKUS network recently introduced the RUCKUS MDU (Multi-Dwelling Unit) suite. The integrated RUCKUS DSE AI assistant and Wi-Fi 7 access points ensure intelligent network management, low latency and high reliability. Strong focus on innovation and portfolio expansion gives it a competitive edge over other industry leaders such as Amphenol, Ubiquiti and Corning.
Despite fierce competition in each of its served markets, the company was able to hold on to its large customer base. A worldwide salesforce and extensive network of channel partners, including independent distributors, system integrators and value-added resellers, enable CommScope to efficiently serve its broad customer base across 100 countries. Enterprises like Charter Communications, Inc., Comcast Corporation, Cox Communications, Rogers Communication Inc., National Broadband Network Company Limited and more rely on COMM’s product suite to advance their network infrastructure.
How Do Zacks Estimates Compare for COMM & GLW?
The Zacks Consensus Estimate for CommScope’s 2025 sales implies year-over-year growth of 17.18% while EPS is projected at $1.64 per share against a loss of 3 cents a year ago. The EPS estimates for 2025 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Corning’s 2025 sales implies year-over-year growth of 12.99%, while that of EPS is projected at $2.52 per share compared to $1.96 per share a year ago. The EPS estimates for 2025 have increased over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of COMM & GLW
Over the past year, CommScope has gained 248% compared with the industry’s growth of 120.3%. Corning has gained 94.6% over the same period.
Image Source: Zacks Investment Research
CommScope looks more attractive than Corning from a valuation standpoint. Going by the price/sales ratio, COMM’s shares currently trade at 0.71 forward sales, significantly lower than Corning’s 4.47.
Image Source: Zacks Investment Research
COMM or GLW: Which is a Better Pick?
CommScope sports a Zacks Rank #1 (Strong Buy), while Corning has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Both companies are steadily expanding their portfolio offerings to tap into emerging market opportunities related to fiber expansions, 5G adoption, consumer electronics and AI data centers. Both companies are showing consistent upward estimate revisions. However, with a Zacks Rank #1, attractive valuation and better price performance, CommScope appears to be a better investment option right now.