Critical Contrast: Inseego (NASDAQ:INSG) versus Allot (NASDAQ:ALLT)

Inseego (NASDAQ:INSG) and Allot (NASDAQ:ALLT) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Institutional and Insider Ownership

34.2% of Inseego shares are held by institutional investors. Comparatively, 51.5% of Allot shares are held by institutional investors. 21.7% of Inseego shares are held by insiders. Comparatively, 3.4% of Allot shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Inseego and Allot”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inseego	$166.19 million	0.46	$840,000.00	$0.13	36.08
Allot	$101.99 million	3.73	$3.70 million	$0.22	35.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inseego	-6.41%	-13.38%	-8.89%
Allot	9.40%	9.64%	5.99%

Analyst Recommendations

This is a summary of current recommendations and price targets for Inseego and Allot, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inseego	1	2	3	1	2.57
Allot	1	1	5	0	2.57

Inseego currently has a consensus price target of $14.60, suggesting a potential upside of 211.30%. Allot has a consensus price target of $13.38, suggesting a potential upside of 70.82%. Given Inseego’s higher probable upside, research analysts clearly believe Inseego is more favorable than Allot.

Risk and Volatility

Inseego has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Allot has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Summary

Allot beats Inseego on 8 of the 14 factors compared between the two stocks.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, 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.