Allot (NASDAQ:ALLT – Get Free Report) and Inseego (NASDAQ:INSG – Get Free Report) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.
Profitability
This table compares Allot and Inseego’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allot | 9.40% | 9.78% | 6.20% |
| Inseego | -6.41% | -13.38% | -8.95% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Allot and Inseego, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allot | 1 | 1 | 5 | 0 | 2.57 |
| Inseego | 1 | 2 | 3 | 1 | 2.57 |
Risk and Volatility
Allot has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Institutional & Insider Ownership
51.5% of Allot shares are held by institutional investors. Comparatively, 34.2% of Inseego shares are held by institutional investors. 3.4% of Allot shares are held by company insiders. Comparatively, 21.7% of Inseego shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Allot and Inseego”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allot | $101.99 million | 3.78 | $3.70 million | $0.13 | 61.00 |
| Inseego | $166.19 million | 0.47 | $840,000.00 | $0.13 | 36.38 |
Allot has higher earnings, but lower revenue than Inseego. Inseego is trading at a lower price-to-earnings ratio than Allot, indicating that it is currently the more affordable of the two stocks.
Summary
Allot beats Inseego on 7 of the 13 factors compared between the two stocks.
About Allot
Allot Communications Ltd. is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Their solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Their industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe.
About Inseego
Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.
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