Genasys (NASDAQ:GNSS) vs. Aviat Networks (NASDAQ:AVNW) Critical Analysis

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

Earnings and Valuation

This table compares Aviat Networks and Genasys”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aviat Networks	$439.68 million	0.57	$2.54 million	$0.19	103.21
Genasys	$40.76 million	1.64	-$18.11 million	($0.13)	-11.31

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aviat Networks	0.58%	5.85%	2.49%
Genasys	-10.86%	-435.06%	-9.83%

Insider & Institutional Ownership

78.6% of Aviat Networks shares are owned by institutional investors. Comparatively, 40.0% of Genasys shares are owned by institutional investors. 5.3% of Aviat Networks 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 stock will outperform the market over the long term.

Risk and Volatility

Aviat Networks has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Genasys has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Aviat Networks and Genasys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aviat Networks	1	1	8	0	2.70
Genasys	1	0	2	0	2.33

Aviat Networks presently has a consensus target price of $32.71, indicating a potential upside of 66.82%. Genasys has a consensus target price of $3.87, indicating a potential upside of 163.04%. Given Genasys’ higher possible upside, analysts plainly believe Genasys is more favorable than Aviat Networks.

Summary

Aviat Networks beats Genasys on 10 of the 14 factors compared between the two stocks.

About Aviat Networks

Aviat Networks, Inc. provides microwave networking and wireless access networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers, switches, and trunking; and private LTE, virtual fiber, and element management products; and hosted software products, such as aviat design, frequency assurance software, and health assurance software. It also provides project services, which includes design and engineering, site and path surveys, assembly and integrations, project management, and install and commission; and managed services, such as network and interface monitoring, network health, onsite maintenance, and remote upgrades. In addition, the company offers support services, including extended warranty, warranty plus, provision support, and license key management, as well as instructor and virtual instructor led training, e-learning and certification services. It serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. company was incorporated in 2006 and is headquartered in Austin, Texas.

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.