Image Sensing Systems (NASDAQ: ISNS) and Logitech (NASDAQ:LOGI) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Volatility & Risk

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Image Sensing Systems has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Logitech has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Image Sensing Systems and Logitech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Image Sensing Systems 14.31% 30.65% 23.15%
Logitech 8.10% 23.38% 13.30%

Institutional and Insider Ownership

13.9% of Image Sensing Systems shares are held by institutional investors. Comparatively, 35.1% of Logitech shares are held by institutional investors. 5.0% of Image Sensing Systems shares are held by company insiders. Comparatively, 2.2% of Logitech 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.

Earnings & Valuation

This table compares Image Sensing Systems and Logitech’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Image Sensing Systems $14.52 million 1.56 $2.07 million $0.40 10.88
Logitech $2.21 billion 2.79 $205.87 million $1.19 31.53

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

Dividends

Logitech pays an annual dividend of $0.41 per share and has a dividend yield of 1.1%. Image Sensing Systems does not pay a dividend. Logitech pays out 34.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Image Sensing Systems and Logitech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Image Sensing Systems 0 0 0 0 N/A
Logitech 1 0 4 0 2.60

Logitech has a consensus target price of $45.80, suggesting a potential upside of 22.07%. Given Logitech’s higher probable upside, analysts clearly believe Logitech is more favorable than Image Sensing Systems.

Summary

Logitech beats Image Sensing Systems on 10 of the 15 factors compared between the two stocks.

About Image Sensing Systems

Image Sensing Systems, Inc. is a provider of software-based products and solutions for the intelligent transportation systems (ITS) industry. The Company develops and markets video and radar processing products for use in traffic, security, police and parking applications, such as intersection control, highway, bridge and tunnel traffic management, venue security, entry control and traffic data collection. The Company operates through two segments: Intersection and Highway. Video products are sold in the Intersection segment. Radar products are sold in the Highway segment. The Company’s family of products, which it markets as Autoscope video or video products (Autoscope) and RTMS radar or radar products (RTMS), provides end users with the tools that manage traffic flow and support driver safety. Its technology analyzes signals from sensors and transmits the information to management systems and controllers or directly to users.

About Logitech

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwide. The company offers portable wireless Bluetooth speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; gaming mice, keyboards, headsets, mousepads, and steering wheels and flight sticks; and audio and video, and other products that connect small and medium sized user groups. It also provides keyboards and covers for tablets and smartphones, as well as other accessories for mobile devices; pointing devices, such as PC and Mac-related mice, touchpads, and presenters; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combos; PC-based Webcams; and remote control and home automation products. The company sells its products through direct sales to retailers and e-tailers, as well as indirect sales through distributors. Its channel network includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers, and online merchants. The company was founded in 1981 and is headquartered in Lausanne, Switzerland.

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