Genasys (NASDAQ:GNSS) vs. Belden (NYSE:BDC) Critical Contrast

Genasys (NASDAQ:GNSS) and Belden (NYSE:BDC) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Institutional and Insider Ownership

40.0% of Genasys shares are owned by institutional investors. Comparatively, 98.8% of Belden shares are owned by institutional investors. 8.3% of Genasys shares are owned by insiders. Comparatively, 1.1% of Belden shares are owned by 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.

Profitability

This table compares Genasys and Belden’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genasys	-10.86%	-435.06%	-9.83%
Belden	5.62%	25.06%	8.07%

Valuation and Earnings

This table compares Genasys and Belden”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genasys	$40.76 million	1.57	-$18.11 million	($0.13)	-10.81
Belden	$2.72 billion	1.54	$237.52 million	$4.45	24.08

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

Analyst Ratings

This is a summary of current ratings and price targets for Genasys and Belden, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genasys	1	0	2	0	2.33
Belden	0	2	5	1	2.88

Genasys presently has a consensus target price of $3.87, indicating a potential upside of 175.21%. Belden has a consensus target price of $156.00, indicating a potential upside of 45.61%. Given Genasys’ higher possible upside, analysts plainly believe Genasys is more favorable than Belden.

Risk and Volatility

Genasys has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Belden has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Summary

Belden beats Genasys on 12 of the 15 factors compared between the two stocks.

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.

About Belden

Belden Inc. designs, manufactures, and markets a portfolio of signal transmission solutions for mission critical applications in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It operates in two segments, Enterprise Solutions and Industrial Automation Solutions. The Enterprise Solutions segment offers copper cable and connectivity solutions, fiber cable and connectivity solutions, interconnect panels, racks and enclosures, and signal extension and matrix switching systems for use in applications, such as local area networks, data centers, access control, 5G, fiber to the home, and building automation. It also provides power, cooling, and airflow management products for mission-critical data center operations; and end-to-end fiber and copper network systems. This segment serves commercial real estate, education, financial, stadiums and venues, military installations, and broadband and wireless service providers, as well as data centers, governments, healthcare, and hospitality sectors. The Industrial Automation Solutions segment offers network infrastructure and digitization solutions; secure networks for the digitization and automation of industries and infrastructure; and products and solutions covering various aspects of data handling, including acquisition, transmission, orchestration, and management for applications in discrete automation, process automation, energy, and mass transit. It sells its products to distributors, end-users, installers, and original equipment manufacturers (OEMs). The company was formerly known as Belden CDT Inc. and changed its name to Belden Inc. in May 2007. Belden Inc. was founded in 1902 and is headquartered in Saint Louis, Missouri.