Critical Contrast: Allot (NASDAQ:ALLT) vs. Inspired Entertainment (NASDAQ:INSE)

Allot (NASDAQ:ALLTGet Free Report) and Inspired Entertainment (NASDAQ:INSEGet Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares Allot and Inspired Entertainment”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allot $101.99 million 3.52 $3.70 million $0.13 56.69
Inspired Entertainment $304.10 million 0.73 -$17.00 million ($0.61) -13.61

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

Institutional and Insider Ownership

51.5% of Allot shares are owned by institutional investors. Comparatively, 77.4% of Inspired Entertainment shares are owned by institutional investors. 3.4% of Allot shares are owned by company insiders. Comparatively, 13.1% of Inspired Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Allot has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Inspired Entertainment has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Allot and Inspired Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allot 1 1 5 0 2.57
Inspired Entertainment 1 2 1 0 2.00

Allot presently has a consensus target price of $13.63, suggesting a potential upside of 84.87%. Inspired Entertainment has a consensus target price of $15.00, suggesting a potential upside of 80.72%. Given Allot’s stronger consensus rating and higher possible upside, research analysts clearly believe Allot is more favorable than Inspired Entertainment.

Profitability

This table compares Allot and Inspired Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allot 5.68% 7.38% 4.70%
Inspired Entertainment -5.78% -1,176.67% -0.68%

Summary

Allot beats Inspired Entertainment on 11 of the 14 factors compared between the two stocks.

About Allot

(Get Free Report)

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 Inspired Entertainment

(Get Free Report)

Inspired Entertainment, Inc., a gaming technology company, engages in the supply of content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. It operates in four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games, including greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Women's Soccer, V-Play Football, V-Play Basketball, V-Play Baseball, and V-Play NFLA names. The Interactive segment provides a range of random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.

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