Inspired Entertainment (NASDAQ:INSE – Get Free Report) and Allot (NASDAQ:ALLT – Get Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Insider & Institutional Ownership
77.4% of Inspired Entertainment shares are held by institutional investors. Comparatively, 51.5% of Allot shares are held by institutional investors. 13.1% of Inspired Entertainment shares are held by insiders. Comparatively, 3.4% of Allot 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.
Analyst Ratings
This is a summary of recent recommendations and price targets for Inspired Entertainment and Allot, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspired Entertainment | 1 | 2 | 1 | 0 | 2.00 |
| Allot | 1 | 1 | 5 | 0 | 2.57 |
Profitability
This table compares Inspired Entertainment and Allot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inspired Entertainment | -5.78% | -1,176.67% | -0.68% |
| Allot | 5.68% | 7.38% | 4.70% |
Risk and Volatility
Inspired Entertainment has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Allot has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.
Valuation and Earnings
This table compares Inspired Entertainment and Allot”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Inspired Entertainment | $300.90 million | 0.69 | -$17.00 million | ($0.61) | -12.79 |
| Allot | $105.27 million | 3.47 | $3.70 million | $0.13 | 57.77 |
Allot has lower revenue, but higher earnings 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.
Summary
Allot beats Inspired Entertainment on 10 of the 14 factors compared between the two stocks.
About Inspired Entertainment
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.
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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