Allot (NASDAQ:ALLT – Get Free Report) and Airgain (NASDAQ:AIRG – Get Free Report) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
51.5% of Allot shares are held by institutional investors. Comparatively, 52.8% of Airgain shares are held by institutional investors. 3.4% of Allot shares are held by company insiders. Comparatively, 17.5% of Airgain shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Allot and Airgain”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allot | $101.99 million | 4.09 | $3.70 million | $0.22 | 38.50 |
| Airgain | $51.78 million | 1.34 | -$6.43 million | ($0.56) | -9.46 |
Allot has higher revenue and earnings than Airgain. Airgain is trading at a lower price-to-earnings ratio than Allot, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Allot has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Airgain has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Allot and Airgain, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allot | 1 | 1 | 4 | 0 | 2.50 |
| Airgain | 1 | 0 | 4 | 0 | 2.60 |
Allot presently has a consensus target price of $13.38, indicating a potential upside of 57.91%. Airgain has a consensus target price of $7.70, indicating a potential upside of 45.28%. Given Allot’s higher possible upside, equities research analysts plainly believe Allot is more favorable than Airgain.
Profitability
This table compares Allot and Airgain’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allot | 9.40% | 9.64% | 5.99% |
| Airgain | -13.65% | -13.72% | -8.74% |
Summary
Allot beats Airgain on 10 of the 13 factors compared between the two stocks.
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.
About Airgain
Airgain, Inc. provides wireless connectivity solutions that creates and delivers embedded components, external antennas, and integrated systems worldwide. The company's products include MaxBeam embedded antennas; profile embedded antennas; profile contour embedded antennas; profile ceramic embedded antenna; ultra embedded antennas; and SmartMax embedded antennas. It offers embedded and NimbeLink embedded moderms; custom cellular solutions; cellular IoT development; cellular IoT development kits; and IoT data plans. In addition, the company provides 5G connectivity, smart repeaters, and fixed wireless access; asset tracking solutions, devices, and partners; and external antennas, fleet antennas, IoT antennas, network antennas, vehicle networking, partner solutions, and accessories. It offers its products under the Antenna Plus brand. It serves industrial, consumer, automotive fleet, enterprise, energy, medical, transportation, agriculture, services, and public safety markets. The company was formerly known as AM Group and changed its name to Airgain, Inc. in 2004. Airgain, Inc. was incorporated in 1995 and is headquartered in San Diego, California.
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