Head-To-Head Review: Black Box (BBOX) and Allot Communications (ALLT)
Black Box (NASDAQ: BBOX) and Allot Communications (NASDAQ:ALLT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Institutional & Insider Ownership
62.1% of Black Box shares are owned by institutional investors. Comparatively, 54.2% of Allot Communications shares are owned by institutional investors. 3.7% of Black Box shares are owned by company 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.
This is a summary of recent ratings and target prices for Black Box and Allot Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Black Box presently has a consensus target price of $10.00, suggesting a potential upside of 440.54%. Given Black Box’s higher possible upside, research analysts plainly believe Black Box is more favorable than Allot Communications.
Valuation and Earnings
This table compares Black Box and Allot Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Black Box||$855.70 million||0.03||-$7.05 million||N/A||N/A|
|Allot Communications||$81.99 million||2.20||-$18.07 million||($0.35)||-15.31|
Black Box has higher revenue and earnings than Allot Communications.
This table compares Black Box and Allot Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Black Box pays an annual dividend of $0.12 per share and has a dividend yield of 6.5%. Allot Communications does not pay a dividend.
Volatility and Risk
Black Box has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Allot Communications has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Black Box beats Allot Communications on 9 of the 13 factors compared between the two stocks.
Black Box Company Profile
Black Box Corporation is a technology solutions provider. The Company is engaged in designing, building, managing and securing the information technology (IT) infrastructure. Offerings under the Company’s Products platform include IT infrastructure, specialty networking, multimedia and keyboard/video/mouse (KVM) switching. Offerings under its Services platform include unified communications, data infrastructure and managed services. It conducts business globally and manages its business on a geographic-service type basis consisting of four segments: North America Products, North America Services, International Products and International Services. The offerings of its Products platform are distributed through value-added resellers, direct marketing manufacturers, mass merchandisers, Web retailers and others. The offerings of its Services platform are distributed through value-added resellers, manufacturers and large system integrators, among others.
Allot Communications Company Profile
Allot Communications Ltd. provides visibility, intelligence, security, and monetization solutions that enable service providers and enterprises to protect and personalize the digital experience worldwide. The company offers various platforms, including Allot Service Gateway 9500, Allot Service Gateway Tera, Allot Service Gateway, and Allot NetEnforcer for in-line deployment in traditional and virtualized network access infrastructure. It also provides subscriber management platforms, such as Allot TierManager, Allot QuotaManager, Allot ChargeSmart, and Allot Smart Engage Onboarding that drive centralized creation, provisioning, and pricing of subscriber services; and analytics solutions comprising Allot ClearSee Analytics and Allot ClearSee Data Source that analyze traffic data. In addition, the company offers security solutions comprising Allot WebSafe Personal, Allot WebSafe, Allot WebSafe Business, Allot Service Protector, Allot Content Protector, and Allot SpamOut Protector for protecting network service integrity and brand reputation. Further, it offers centralized management solutions, such as NetXplorer Analytics and Reporting, NetXplorer Data Collector, NetAccounting Server, and NetPolicy Provisioner for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. Allot Communications Ltd. markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and cable operators, educational institutions, governments, and enterprises, as well as wireless, wireline, and satellite Internet service providers. The company was formerly known as Ariadne Ltd. and changed its name to Allot Communications Ltd. in September 1997. Allot Communications Ltd. was founded in 1996 and is based in Hod-Hasharon, Israel.
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