Head to Head Survey: Inseego (NASDAQ:INSG) and Allot (NASDAQ:ALLT)

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

Risk & Volatility

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

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%

Analyst Ratings

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

	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 price target of $13.38, indicating a potential upside of 52.33%. Inseego has a consensus price target of $13.00, indicating a potential upside of 205.88%. Given Inseego’s higher possible upside, analysts clearly believe Inseego is more favorable than Allot.

Valuation and Earnings

This table compares Allot and Inseego”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allot	$101.99 million	4.24	$3.70 million	$0.22	39.91
Inseego	$166.19 million	0.47	$840,000.00	($0.39)	-10.90

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.

Insider & Institutional Ownership

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

Summary

Allot beats Inseego on 9 of the 13 factors compared between the two stocks.

About Allot

Allot Ltd. is an Israeli technology company that develops network intelligence and security solutions for communications service providers. Its software and hardware are designed to help telecommunications operators monitor network traffic, manage bandwidth, improve service quality and protect infrastructure from cyber threats. The company’s offerings have included network visibility and analytics tools, traffic management platforms, distributed denial-of-service protection, and security services for mobile, fixed-line and broadband networks.

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.