Gilat Satellite Networks (NASDAQ:GILT – Get Free Report) and ZTE (OTCMKTS:ZTCOY – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Institutional and Insider Ownership
35.7% of Gilat Satellite Networks shares are held by institutional investors. 1.1% of Gilat Satellite Networks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Gilat Satellite Networks and ZTE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gilat Satellite Networks | 6.21% | 10.12% | 6.79% |
| ZTE | 5.89% | 13.25% | 4.04% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gilat Satellite Networks | 0 | 2 | 1 | 1 | 2.75 |
| ZTE | 0 | 0 | 0 | 0 | 0.00 |
Gilat Satellite Networks presently has a consensus price target of $20.00, suggesting a potential upside of 90.48%. Given Gilat Satellite Networks’ stronger consensus rating and higher probable upside, analysts plainly believe Gilat Satellite Networks is more favorable than ZTE.
Valuation and Earnings
This table compares Gilat Satellite Networks and ZTE”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gilat Satellite Networks | $451.66 million | 1.72 | $20.72 million | $0.44 | 23.86 |
| ZTE | $17.75 billion | 0.53 | $1.06 billion | $0.47 | 8.60 |
ZTE has higher revenue and earnings than Gilat Satellite Networks. ZTE is trading at a lower price-to-earnings ratio than Gilat Satellite Networks, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gilat Satellite Networks has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, ZTE has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.
Summary
Gilat Satellite Networks beats ZTE on 11 of the 15 factors compared between the two stocks.
About Gilat Satellite Networks
Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel, the United States, Peru, and internationally. It operates in three segments: Satellite Networks, Integrated Solutions, and Network Infrastructure and Services. Its portfolio consists of cloud-based satellite network platform, very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, and defense ground systems and field services. The company also develops, manufactures, and supplies products and solutions for mission-critical defense and broadcast satellite communications systems, advanced on-the-move and on-the-pause satellite communications equipment, systems, and solutions, including airborne, ground-mobile satellite systems and solutions; and provides terrestrial, including fiber optic and wireless network, and satellite network construction and operation services. In addition, it provides turnkey integrated solutions, including managed satellite network services, network planning and optimization, remote network operation, call center support, hub and field operations, and communication networks construction and installation services; connectivity services, internet access, and telephony services to enterprise, government, and residential customers; and builds telecommunication infrastructure using fiber-optic and wireless technologies for broadband connectivity. The company sells its products and solutions to communication service providers, satellite operators, Mobile Network Operators, and system integrators that use satellite communications to serve enterprise, social inclusion solutions, government and residential users, and defense and homeland security organizations, as well as directly to end-users. Gilat Satellite Networks Ltd. was incorporated in 1987 and is headquartered in Petah Tikva, Israel.
About ZTE
ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.
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