Contrasting Inseego (NASDAQ:INSG) & Allot (NASDAQ:ALLT)

Allot (NASDAQ:ALLT) and Inseego (NASDAQ:INSG) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allot	9.40%	9.64%	5.99%
Inseego	-12.88%	N/A	-17.24%

Institutional and Insider Ownership

51.5% of Allot shares are held by institutional investors. Comparatively, 34.2% of Inseego shares are held by institutional investors. 3.4% of Allot shares are held by company insiders. Comparatively, 21.7% of Inseego shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Allot has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Inseego has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Allot and Inseego, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allot	1	1	4	0	2.50
Inseego	1	2	3	0	2.33

Allot currently has a consensus target price of $13.38, indicating a potential upside of 71.92%. Inseego has a consensus target price of $13.00, indicating a potential upside of 192.79%. Given Inseego’s higher possible upside, analysts plainly believe Inseego is more favorable than Allot.

Earnings & Valuation

This table compares Allot and Inseego”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	3.76	$3.70 million	$0.22	35.36
Inseego	$166.19 million	0.49	$840,000.00	($0.39)	-11.38

Allot has higher earnings, but lower revenue than Inseego. Inseego 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 Inseego on 9 of the 13 factors compared between the two stocks.

About Allot

Allot Ltd. develops network intelligence, optimization and cybersecurity solutions for communications service providers, enterprises and public-sector organizations. Its software and platforms help customers manage network traffic, monitor service performance and protect users and networks from online threats. Its offerings include network traffic management and analytics, as well as security services such as protection against distributed denial-of-service attacks and threats delivered through domain name system (DNS) traffic.

About Inseego

Inseego Corp. develops wireless broadband and mobile networking solutions for service providers, enterprises, small businesses, government organizations and consumers. The company focuses on connecting devices, locations and users through cellular networks, with an emphasis on 5G and other high-speed wireless technologies. Its product portfolio includes mobile hotspots, fixed wireless access equipment, indoor and outdoor customer-premises equipment, routers and gateways. Inseego also provides cloud-based device management and networking software designed to help customers provision, monitor and manage connected equipment.