Analyzing Arbe Robotics (NASDAQ:ARBE) and Allot (NASDAQ:ALLT)

Allot (NASDAQ:ALLTGet Free Report) and Arbe Robotics (NASDAQ:ARBEGet Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Valuation & Earnings

This table compares Allot and Arbe Robotics”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 2.97 $3.70 million $0.08 78.13
Arbe Robotics $1.03 million 61.70 -$45.17 million ($0.41) -1.42

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

Profitability

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

Net Margins Return on Equity Return on Assets
Allot 3.63% 6.35% 3.70%
Arbe Robotics -4,402.73% -81.52% -57.75%

Analyst Recommendations

This is a summary of current ratings for Allot and Arbe Robotics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allot 1 1 5 0 2.57
Arbe Robotics 1 0 3 0 2.50

Allot currently has a consensus target price of $13.13, suggesting a potential upside of 110.00%. Arbe Robotics has a consensus target price of $2.25, suggesting a potential upside of 286.60%. Given Arbe Robotics’ higher probable upside, analysts clearly believe Arbe Robotics is more favorable than Allot.

Volatility and Risk

Allot has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Insider and Institutional Ownership

51.5% of Allot shares are owned by institutional investors. Comparatively, 33.4% of Arbe Robotics shares are owned by institutional investors. 3.4% of Allot shares are owned by company insiders. Comparatively, 53.5% of Arbe Robotics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Allot beats Arbe Robotics on 11 of the 14 factors compared between the two stocks.

About Allot

(Get Free Report)

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 Arbe Robotics

(Get Free Report)

Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.

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