AstroNova (NASDAQ:ALOT) and RadiSys (NASDAQ:RSYS) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.
Institutional and Insider Ownership
59.3% of AstroNova shares are owned by institutional investors. Comparatively, 29.9% of RadiSys shares are owned by institutional investors. 10.4% of AstroNova shares are owned by insiders. Comparatively, 6.1% of RadiSys 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.
AstroNova has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, RadiSys has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.
AstroNova pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. RadiSys does not pay a dividend. AstroNova pays out 44.4% of its earnings in the form of a dividend.
This table compares AstroNova and RadiSys’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for AstroNova and RadiSys, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RadiSys has a consensus price target of $6.00, indicating a potential upside of 248.84%. Given RadiSys’ higher probable upside, analysts clearly believe RadiSys is more favorable than AstroNova.
Valuation and Earnings
This table compares AstroNova and RadiSys’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AstroNova||$113.40 million||1.22||$3.28 million||$0.63||31.57|
|RadiSys||$133.77 million||0.51||-$52.60 million||($0.55)||-3.13|
AstroNova has higher earnings, but lower revenue than RadiSys. RadiSys is trading at a lower price-to-earnings ratio than AstroNova, indicating that it is currently the more affordable of the two stocks.
AstroNova beats RadiSys on 12 of the 16 factors compared between the two stocks.
AstroNova Company Profile
AstroNova, Inc. designs, develops, manufactures, and distributes specialty printers, and data acquisition and analysis systems in the United States, Canada, Asia, Europe, Central and South America, and internationally. The company operates through two segments, Product Identification and Test & Measurement (T&M). The Product Identification segment offers tabletop and work cell-ready digital color label printers; specialty OEM printing systems; and labels, tags, inks, toner, and thermal transfer ribbons under the QuickLabel brand. This segment also offers T2-C, an inkjet table top label press; T2, a parent of the T2-C; T4 for print, die cut, and lamination; and T3, a customizable label production and finishing press under the TrojanLabel brand. In addition, this segment sells various specialized software used to operate the printers and presses, design labels, and manage printing on an automated basis. It serves chemicals, cosmetics, food and beverage, medical products, pharmaceuticals, and other industries, as well as brand owners, label converters, commercial printers, and packaging manufacturers. The T&M segment offers visual data from local and networked data streams and sensors; a range of hardware and software products under the AstroNova T&M brand; Daxus portable data acquisition systems; TMX high-speed data acquisition systems; DDX100 SmartCorder portable data acquisition systems; EV-500, a digital strip chart recording system; PTA-45B cockpit printers; and ToughWriter, Miltope, and RITEC branded airborne printers. Its AstroNova airborne printers are used in flight decks, as well as military, commercial, and business aircraft cabins; and ToughSwitch Ethernet switches used in military aircraft and vehicles. The company was formerly known as Astro-Med, Inc. and changed its name to AstroNova, Inc. in May 2016. The company was founded in 1969 and is headquartered in West Warwick, Rhode Island.
RadiSys Company Profile
Radisys Corporation provides telecom solutions worldwide. It operates in two segments, Software-Systems and Hardware Solutions. The company's products include MediaEngine products that provide media processing capabilities required for applications, such as voice over long-term evolution (VoLTE), voice over Wi-Fi, Web real-time communication, and multimedia conferencing, as well as media interworking; and MobilityEngine, Its MobilityEngine products portfolio provide solutions for 4G, LTE-Advance and emerging 5G standards for RAN use cases, including Centralized, Virtualized and multi access edge compute (MEC). It also offers FlowEngine, which comprises data plane traffic distribution products that classify and distribute session data flows to network processing resources. In addition, the company develops telecommunications products and applications; and DCEngine products include open-based rack-scale systems that provide transformation to cloud based compute, storage, networking fabrics, and open source hardware and software. Further, it offers legacy embedded products, including ATCA, computer-on-module express, and rack mount servers that enable the control and movement of data in 3G and LTE telecom networks and provide the hardware enablement for network elements applications; enable image processing capabilities for healthcare markets; and enable energy-efficient computing capabilities for industrial deployments. The company sells its products through direct sales, distributors, sales representatives, and system integrators in North America, Europe, the Middle East, Africa, and the Asia Pacific. Radisys Corporation was founded in 1987 and is headquartered in Hillsboro, Oregon.
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