Critical Comparison: u-blox (OTCMKTS:UBLXF) and Allot (NASDAQ:ALLT)

u-blox (OTCMKTS:UBLXF) and Allot (NASDAQ:ALLT) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares u-blox and Allot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
u-blox	N/A	N/A	N/A
Allot	5.68%	7.38%	4.70%

Insider & Institutional Ownership

32.3% of u-blox shares are held by institutional investors. Comparatively, 51.5% of Allot shares are held by institutional investors. 3.4% of Allot shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for u-blox and Allot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
u-blox	0	0	0	0	0.00
Allot	1	1	5	0	2.57

Allot has a consensus target price of $13.62, indicating a potential upside of 74.23%. Given Allot’s stronger consensus rating and higher possible upside, analysts plainly believe Allot is more favorable than u-blox.

Valuation and Earnings

This table compares u-blox and Allot”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
u-blox	N/A	N/A	N/A	$3.99	42.61
Allot	$101.99 million	3.73	$3.70 million	$0.13	60.15

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

Summary

Allot beats u-blox on 10 of the 11 factors compared between the two stocks.

About u-blox

u-blox Holding AG develops, manufactures, and markets products and services supporting GPS/GNSS satellite positioning systems for the automotive, industrial, and consumer markets in Europe, the Middle East, Africa, the United States, and the Asia Pacific. It operates through two segments, Positioning and Wireless Products, and Wireless Services. The company develops and sells chips and modules to locate and connect devices. In addition, it offers a range of GPS/GNSS positioning products, including satellite receiver chips, chips, receiver modules, receiver boards, antennas, and smart antennas for navigation, automatic vehicle location, security, traffic control, location-based services, timing, and agriculture. u-blox Holding AG was founded in 1997 and is based in Thalwil, Switzerland.

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.