Genasys (NASDAQ:GNSS – Get Free Report) and Lantronix (NASDAQ:LTRX – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Volatility and Risk
Genasys has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Lantronix has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Profitability
This table compares Genasys and Lantronix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genasys | -10.86% | -435.06% | -9.83% |
| Lantronix | -2.63% | -3.63% | -2.42% |
Institutional and Insider Ownership
40.0% of Genasys shares are held by institutional investors. Comparatively, 39.4% of Lantronix shares are held by institutional investors. 8.3% of Genasys shares are held by company insiders. Comparatively, 2.8% of Lantronix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and price targets for Genasys and Lantronix, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genasys | 1 | 0 | 2 | 0 | 2.33 |
| Lantronix | 2 | 0 | 6 | 0 | 2.50 |
Genasys currently has a consensus price target of $3.87, suggesting a potential upside of 170.40%. Lantronix has a consensus price target of $10.80, suggesting a potential upside of 131.76%. Given Genasys’ higher probable upside, analysts plainly believe Genasys is more favorable than Lantronix.
Earnings and Valuation
This table compares Genasys and Lantronix”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genasys | $56.89 million | 1.14 | -$18.11 million | ($0.13) | -11.00 |
| Lantronix | $120.90 million | 1.81 | -$4.18 million | ($0.11) | -42.36 |
Lantronix has higher revenue and earnings than Genasys. Lantronix is trading at a lower price-to-earnings ratio than Genasys, indicating that it is currently the more affordable of the two stocks.
Summary
Lantronix beats Genasys on 10 of the 14 factors compared between the two stocks.
About Genasys
Genasys Inc. (NASDAQ: GNSS) is a technology company that provides critical communications and mass notification solutions. Its platform is designed to help government agencies, public-safety organizations, businesses and other institutions communicate urgent information, warnings and instructions to people in affected areas. The company’s offerings combine cloud-based software, mobile communications and specialized hardware. Its products support geographically targeted alerts, emergency notifications, evacuation management, incident coordination and public-warning campaigns across channels such as mobile devices, websites, social media, sirens and other notification systems.
About Lantronix
Lantronix, Inc. (NASDAQ: LTRX) is a provider of Internet of Things (IoT) and edge-computing solutions that help organizations connect, manage, and secure devices and equipment. The company serves customers in industrial, enterprise, transportation, healthcare, smart-city, and other applications where reliable remote connectivity and device management are required. Its portfolio includes embedded networking modules, industrial and cellular gateways, routers, out-of-band management products, and software for remotely provisioning, monitoring, and managing connected devices.
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