Contrasting Inseego (NASDAQ:INSG) and Allot (NASDAQ:ALLT)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Allot and Inseego, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allot	1	1	4	0	2.50
Inseego	1	2	3	0	2.33

Allot currently has a consensus target price of $13.38, suggesting a potential upside of 56.25%. Inseego has a consensus target price of $13.00, suggesting a potential upside of 235.05%. Given Inseego’s higher probable upside, analysts clearly believe Inseego is more favorable than Allot.

Profitability

This table compares Allot and Inseego’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%
Inseego	-12.88%	N/A	-17.50%

Volatility and Risk

Allot has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Valuation & Earnings

This table compares Allot and Inseego”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	4.14	$3.70 million	$0.22	38.91
Inseego	$166.19 million	0.38	$840,000.00	($0.39)	-9.95

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

Insider & Institutional Ownership

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

Summary

Allot beats Inseego on 10 of the 14 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 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.