Spirent Communications (OTCMKTS:SPMYY – Get Free Report) and KVH Industries (NASDAQ:KVHI – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Profitability
This table compares Spirent Communications and KVH Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spirent Communications | N/A | N/A | N/A |
| KVH Industries | -6.65% | -2.41% | -2.14% |
Valuation and Earnings
This table compares Spirent Communications and KVH Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Spirent Communications | $460.20 million | 3.37 | $12.90 million | N/A | N/A |
| KVH Industries | $111.01 million | 1.41 | -$7.38 million | ($0.38) | -21.08 |
Spirent Communications has higher revenue and earnings than KVH Industries.
Insider and Institutional Ownership
73.7% of KVH Industries shares are held by institutional investors. 1.0% of Spirent Communications shares are held by insiders. Comparatively, 21.1% of KVH Industries 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.
Risk and Volatility
Spirent Communications has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Spirent Communications and KVH Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spirent Communications | 0 | 0 | 0 | 0 | 0.00 |
| KVH Industries | 1 | 0 | 0 | 0 | 1.00 |
Summary
Spirent Communications beats KVH Industries on 6 of the 10 factors compared between the two stocks.
About Spirent Communications
Spirent Communications plc provides automated test and assurance solutions in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company operates through Lifecycle Service Assurance, and Networks & Security segments. The Lifecycle Service Assurance segment offers lab-based testing solutions for 5G mobile core networks, and cellular and Wi-Fi devices, as well as live solutions. This segment also provides lab and test automation solutions for the telecom industry and enterprises. The Networks & Security segment develops test methodologies, tools, and services for virtualised networks, cloud, and artificial intelligence networking infrastructure, as well as application performance and proactive security validation. This segment also offers Ethernet/internet protocol performance testing solutions, as well as navigation satellite system test and simulation solutions while addressing opportunities in the broader positioning, navigation, and timing market, including low earth orbit satellites and autonomous vehicles. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.
About KVH Industries
KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network management software for maritime communications; CommBox Edge, an advanced maritime network optimization and management solution; Starlink, a companion terminal for TracNet and TracPhone systems; KVH ONE, a global hybrid communication network supporting Internet, VoIP, content delivery, and other; and TracVision, a satellite television antenna system for vessels, recreational vehicles, buses, conversion vans, and automobiles. In addition, the company offers KVH Elite, a streaming service for leisure yachts; KVH OneCare, a services and support for TracNet and TracPhone systems; MOVIElink, a movie distribution solution; MUSIClink, a music and karaoke delivery solution; NEWSlink, a maritime news delivery solution; SPORTSlink, a sporting content delivery solution; TVlink, a television programming delivery solution; and news from home, a digital newspaper service. It sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles. The company was founded in 1982 and is headquartered in Middletown, Rhode Island.
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