Comparing Westell Technologies (OTCMKTS:WSTL) and Gilat Satellite Networks (NASDAQ:GILT)

Westell Technologies (OTCMKTS:WSTL) and Gilat Satellite Networks (NASDAQ:GILT) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Risk & Volatility

Westell Technologies has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Insider & Institutional Ownership

10.9% of Westell Technologies shares are owned by institutional investors. Comparatively, 35.7% of Gilat Satellite Networks shares are owned by institutional investors. 24.6% of Westell Technologies shares are owned by company insiders. Comparatively, 1.1% of Gilat Satellite Networks 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.

Profitability

This table compares Westell Technologies and Gilat Satellite Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westell Technologies	-30.99%	-18.79%	-15.09%
Gilat Satellite Networks	6.21%	10.12%	6.79%

Analyst Recommendations

This is a breakdown of recent recommendations for Westell Technologies and Gilat Satellite Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westell Technologies	0	0	0	0	0.00
Gilat Satellite Networks	0	2	1	1	2.75

Gilat Satellite Networks has a consensus target price of $20.00, indicating a potential upside of 93.05%. Given Gilat Satellite Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Gilat Satellite Networks is more favorable than Westell Technologies.

Valuation and Earnings

This table compares Westell Technologies and Gilat Satellite Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westell Technologies	$29.96 million	3.22	-$10.10 million	($0.56)	-10.89
Gilat Satellite Networks	$451.66 million	1.69	$20.72 million	$0.44	23.55

Gilat Satellite Networks has higher revenue and earnings than Westell Technologies. Westell Technologies is trading at a lower price-to-earnings ratio than Gilat Satellite Networks, indicating that it is currently the more affordable of the two stocks.

Summary

Gilat Satellite Networks beats Westell Technologies on 13 of the 15 factors compared between the two stocks.

About Westell Technologies

Westell Technologies, Inc., through its subsidiary, Westell, Inc., designs and distributes telecommunications products to telephone companies in the United States. The company operates through three segments: In-Building Wireless (IBW), Intelligent Site Management (ISM), and Communications Network Solutions (CNS). The IBW segment offers distributed antenna system conditioners; digital repeaters; battery backup units; and system components and antennas, including couplers, duplexers, splitters, filters, and tappers for commercial and public safety in-building wireless systems. The ISM segment provides a suite of remote units, which provide machine-to-machine communications that enable operators to remotely monitor, manage, and control site infrastructure and support systems. The CNS segment provides a range of indoor and outdoor network infrastructure, such as integrated cabinets, power distribution products, copper and fiber connectivity products, and T1 network interface units. The company serves wireless and wireline service providers, multiple systems operators, Internet service providers, systems integrators, neutral host operators, and distributors through field sales organization, distributors, and partners. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.

About Gilat Satellite Networks

Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel, the United States, Peru, and internationally. It operates in three segments: Satellite Networks, Integrated Solutions, and Network Infrastructure and Services. Its portfolio consists of cloud-based satellite network platform, very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, and defense ground systems and field services. The company also develops, manufactures, and supplies products and solutions for mission-critical defense and broadcast satellite communications systems, advanced on-the-move and on-the-pause satellite communications equipment, systems, and solutions, including airborne, ground-mobile satellite systems and solutions; and provides terrestrial, including fiber optic and wireless network, and satellite network construction and operation services. In addition, it provides turnkey integrated solutions, including managed satellite network services, network planning and optimization, remote network operation, call center support, hub and field operations, and communication networks construction and installation services; connectivity services, internet access, and telephony services to enterprise, government, and residential customers; and builds telecommunication infrastructure using fiber-optic and wireless technologies for broadband connectivity. The company sells its products and solutions to communication service providers, satellite operators, Mobile Network Operators, and system integrators that use satellite communications to serve enterprise, social inclusion solutions, government and residential users, and defense and homeland security organizations, as well as directly to end-users. Gilat Satellite Networks Ltd. was incorporated in 1987 and is headquartered in Petah Tikva, Israel.