Allot (NASDAQ:ALLT – Get Free Report) and Bitfarms (NASDAQ:BITF – Get Free Report) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Allot and Bitfarms, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allot | 1 | 1 | 5 | 0 | 2.57 |
| Bitfarms | 1 | 1 | 6 | 0 | 2.63 |
Allot presently has a consensus target price of $13.63, indicating a potential upside of 89.76%. Bitfarms has a consensus target price of $4.14, indicating a potential downside of 34.18%. Given Allot’s higher probable upside, research analysts clearly believe Allot is more favorable than Bitfarms.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Allot | 5.68% | 7.38% | 4.70% |
| Bitfarms | -48.26% | -4.48% | -3.71% |
Insider and Institutional Ownership
51.5% of Allot shares are held by institutional investors. Comparatively, 20.6% of Bitfarms shares are held by institutional investors. 3.4% of Allot shares are held by company insiders. Comparatively, 9.5% of Bitfarms shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Allot and Bitfarms”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allot | $101.99 million | 3.42 | $3.70 million | $0.13 | 55.23 |
| Bitfarms | $229.28 million | 16.54 | -$138.65 million | ($0.23) | -27.35 |
Allot has higher earnings, but lower revenue than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Allot, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Allot has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, indicating that its stock price is 277% more volatile than the S&P 500.
Summary
Allot beats Bitfarms on 8 of the 14 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 Bitfarms
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.
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