Airgain (NASDAQ:AIRG – Get Free Report) and Allot (NASDAQ:ALLT – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Profitability
This table compares Airgain and Allot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Airgain | -13.65% | -13.72% | -8.74% |
| Allot | 9.40% | 9.64% | 5.99% |
Analyst Recommendations
This is a breakdown of current ratings for Airgain and Allot, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Airgain | 1 | 0 | 4 | 0 | 2.60 |
| Allot | 1 | 1 | 4 | 0 | 2.50 |
Volatility and Risk
Airgain has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Allot has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Institutional and Insider Ownership
52.8% of Airgain shares are owned by institutional investors. Comparatively, 51.5% of Allot shares are owned by institutional investors. 17.5% of Airgain shares are owned by company insiders. Comparatively, 3.4% of Allot shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Airgain and Allot”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airgain | $51.78 million | 1.34 | -$6.43 million | ($0.56) | -9.46 |
| Allot | $101.99 million | 4.09 | $3.70 million | $0.22 | 38.50 |
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.
Summary
Allot beats Airgain on 10 of the 13 factors compared between the two stocks.
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.
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.
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