Allot (NASDAQ:ALLT) versus Genasys (NASDAQ:GNSS) Critical Survey

Allot (NASDAQ:ALLT) and Genasys (NASDAQ:GNSS) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Valuation and Earnings

This table compares Allot and Genasys”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	3.64	$3.70 million	$0.22	34.73
Genasys	$40.76 million	1.62	-$18.11 million	($0.13)	-11.15

Allot has higher revenue and earnings than Genasys. Genasys is trading at a lower price-to-earnings ratio than Allot, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Allot and Genasys, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allot	1	1	4	0	2.50
Genasys	1	0	2	0	2.33

Allot currently has a consensus target price of $13.38, indicating a potential upside of 75.07%. Genasys has a consensus target price of $3.87, indicating a potential upside of 166.67%. Given Genasys’ higher possible upside, analysts plainly believe Genasys is more favorable than Allot.

Profitability

This table compares Allot and Genasys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allot	9.40%	9.64%	5.99%
Genasys	-10.86%	-435.06%	-9.83%

Volatility and Risk

Allot has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Genasys has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

51.5% of Allot shares are owned by institutional investors. Comparatively, 40.0% of Genasys shares are owned by institutional investors. 3.4% of Allot shares are owned by company insiders. Comparatively, 8.3% of Genasys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Allot beats Genasys on 12 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 Genasys

Genasys Inc. engages in the design, development, and commercialization of critical communications hardware and software solutions to alert, inform, and protect people principally in North and South America, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Hardware and Software. It provides Genasys Protect ALERT, an interactive, cloud-based SaaS solution that is designed to enable SLED and enterprise customers to send critical information to at-risk individuals or groups when an emergency occurs using emails, voice calls, text messages, panic buttons, desktop alerts, TV, social media, and other; and Genasys Protect EVAC that enables responding agencies to determine and communicate the proper scope of a response or evacuation by replacing guesswork with data-driven intelligence; and Genasys Protect CONNECT, an instant communication platform that enables first responders and public safety personnel to collaborate and share information in a single space with text, videos, images, and audio from any location. The company also offers Genasys Protect ACOUSTICS, a mass notification speaker system with Genasys protect command-and-control software; and long range acoustic devices, such as acoustic hailing devices which are used to project alert tones and audible voice messages. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. was incorporated in 1992 and is based in San Diego, California.