Comparing Allot (NASDAQ:ALLT) and Viasat (NASDAQ:VSAT)

Viasat (NASDAQ:VSAT) and Allot (NASDAQ:ALLT) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Valuation and Earnings

This table compares Viasat and Allot”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viasat	$4.64 billion	2.23	-$34.09 million	($0.24)	-312.46
Allot	$101.99 million	4.02	$3.70 million	$0.22	37.77

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

Institutional and Insider Ownership

86.0% of Viasat shares are owned by institutional investors. Comparatively, 51.5% of Allot shares are owned by institutional investors. 1.4% of Viasat shares are owned by company insiders. Comparatively, 3.4% of Allot shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viasat	-0.64%	1.44%	0.45%
Allot	9.40%	9.64%	5.99%

Analyst Recommendations

This is a breakdown of current recommendations for Viasat and Allot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viasat	1	2	7	1	2.73
Allot	1	1	4	0	2.50

Viasat presently has a consensus price target of $90.67, suggesting a potential upside of 20.91%. Allot has a consensus price target of $13.38, suggesting a potential upside of 60.95%. Given Allot’s higher probable upside, analysts plainly believe Allot is more favorable than Viasat.

Volatility & Risk

Viasat has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Allot has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Summary

Allot beats Viasat on 9 of the 15 factors compared between the two stocks.

About Viasat

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband internet access and voice over internet protocol services to consumers and businesses; in-flight entertainment and aviation software services to commercial airlines and private business jets; satellite-based connectivity services; mobile broadband services, including satellite-based internet services to energy offshore vessels, cruise ships, consumer ferries, and yachts; and energy services, which include ultra-secure solutions IP connectivity, bandwidth-optimized over-the-top applications, industrial internet-of-things big data enablement, and industry-leading machine learning analytics. Its Commercial Networks segment offers fixed broadband satellite communication systems comprising satellite network infrastructure and ground terminals; mobile broadband satellite communication systems; antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas; and space systems design and satellite networking development systems. The company's Government Systems segment offers government mobile broadband products and services include mobile broadband modems, and terminals and network access control systems; mesh and hub-and-spoke satellite networking systems; secure networking, cybersecurity, and information assurance products; and tactical data link solutions. It designs and development of satellite and ground communications systems and network function virtualization, as well as ground-based network subsystems, as well as space system design and development products and services include architectures for GEO, MEO, LEO satellites, and other satellite platforms. The company was incorporated in 1986 and is headquartered in Carlsbad, California.

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.