Critical Survey: Genasys (NASDAQ:GNSS) versus Belden (NYSE:BDC)

Belden (NYSE:BDC) and Genasys (NASDAQ:GNSS) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Belden and Genasys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Belden	0	3	5	1	2.78
Genasys	1	0	2	0	2.33

Belden currently has a consensus price target of $149.00, suggesting a potential upside of 43.75%. Genasys has a consensus price target of $3.87, suggesting a potential upside of 175.21%. Given Genasys’ higher possible upside, analysts plainly believe Genasys is more favorable than Belden.

Risk and Volatility

Belden has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Genasys has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Institutional and Insider Ownership

98.8% of Belden shares are held by institutional investors. Comparatively, 40.0% of Genasys shares are held by institutional investors. 1.1% of Belden shares are held by company insiders. Comparatively, 8.3% of Genasys shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Belden and Genasys”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Belden	$3.13 billion	1.29	$237.52 million	$4.45	23.29
Genasys	$40.76 million	1.57	-$18.11 million	($0.13)	-10.81

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Belden	5.62%	25.06%	8.07%
Genasys	-10.86%	-435.06%	-9.83%

Summary

Belden beats Genasys on 12 of the 15 factors compared between the two stocks.

About Belden

Belden Inc. develops and supplies connectivity and networking solutions that help organizations transmit data, audio and video. Its products include copper and fiber-optic cable, connectors, and networking equipment used to build and manage communications networks. The company serves industrial, enterprise and broadcast markets. Its solutions support applications such as factory automation, enterprise networking and the production and distribution of audio and video content. Belden sells to customers in markets around the world.

About Genasys

Genasys Inc. (NASDAQ: GNSS) is a technology company that provides critical communications and mass notification solutions. Its platform is designed to help government agencies, public-safety organizations, businesses and other institutions communicate urgent information, warnings and instructions to people in affected areas. The company’s offerings combine cloud-based software, mobile communications and specialized hardware. Its products support geographically targeted alerts, emergency notifications, evacuation management, incident coordination and public-warning campaigns across channels such as mobile devices, websites, social media, sirens and other notification systems.