Critical Comparison: Gilat Satellite Networks (NASDAQ:GILT) & Genasys (NASDAQ:GNSS)

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

Risk and Volatility

Genasys has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Earnings and Valuation

This table compares Genasys and Gilat Satellite Networks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genasys	$56.89 million	1.18	-$18.11 million	($0.13)	-11.35
Gilat Satellite Networks	$451.66 million	1.22	$20.72 million	$0.44	16.91

Gilat Satellite Networks has higher revenue and earnings than Genasys. Genasys 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.

Profitability

This table compares Genasys and Gilat Satellite Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genasys	-10.86%	-435.06%	-9.83%
Gilat Satellite Networks	6.21%	10.12%	6.79%

Institutional and Insider Ownership

40.0% of Genasys shares are held by institutional investors. Comparatively, 35.7% of Gilat Satellite Networks shares are held by institutional investors. 8.3% of Genasys shares are held by company insiders. Comparatively, 1.1% of Gilat Satellite Networks shares are held by company 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Genasys and Gilat Satellite Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genasys	1	0	2	0	2.33
Gilat Satellite Networks	0	2	1	1	2.75

Genasys currently has a consensus target price of $3.87, indicating a potential upside of 162.15%. Gilat Satellite Networks has a consensus target price of $20.00, indicating a potential upside of 168.82%. Given Gilat Satellite Networks’ stronger consensus rating and higher probable upside, analysts plainly believe Gilat Satellite Networks is more favorable than Genasys.

Summary

Gilat Satellite Networks beats Genasys on 12 of the 15 factors compared between the two stocks.

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.

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.