Allot Communications (NASDAQ: ALLT) and Black Box (NASDAQ:BBOX) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Insider and Institutional Ownership
54.2% of Allot Communications shares are held by institutional investors. Comparatively, 62.1% of Black Box shares are held by institutional investors. 3.7% of Black Box shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Allot Communications and Black Box’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Allot Communications and Black Box’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allot Communications||$81.99 million||2.16||-$18.07 million||($0.35)||-15.06|
|Black Box||$855.70 million||0.03||-$7.05 million||N/A||N/A|
Black Box has higher revenue and earnings than Allot Communications.
Black Box pays an annual dividend of $0.12 per share and has a dividend yield of 6.2%. Allot Communications does not pay a dividend.
Volatility and Risk
Allot Communications has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Black Box has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Allot Communications and Black Box, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Black Box has a consensus target price of $10.00, indicating a potential upside of 412.82%. Given Black Box’s higher possible upside, analysts clearly believe Black Box is more favorable than Allot Communications.
Black Box beats Allot Communications on 9 of the 13 factors compared between the two stocks.
Allot Communications Company Profile
Allot Communications Ltd. provides visibility, intelligence, security, and monetization solutions that enable service providers and enterprises to protect and personalize the digital experience worldwide. The company offers various platforms, including Allot Service Gateway 9500, Allot Service Gateway Tera, Allot Service Gateway, and Allot NetEnforcer for in-line deployment in traditional and virtualized network access infrastructure. It also provides subscriber management platforms, such as Allot TierManager, Allot QuotaManager, Allot ChargeSmart, and Allot Smart Engage Onboarding that drive centralized creation, provisioning, and pricing of subscriber services; and analytics solutions comprising Allot ClearSee Analytics and Allot ClearSee Data Source that analyze traffic data. In addition, the company offers security solutions comprising Allot WebSafe Personal, Allot WebSafe, Allot WebSafe Business, Allot Service Protector, Allot Content Protector, and Allot SpamOut Protector for protecting network service integrity and brand reputation. Further, it offers centralized management solutions, such as NetXplorer Analytics and Reporting, NetXplorer Data Collector, NetAccounting Server, and NetPolicy Provisioner for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. Allot Communications Ltd. markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and cable operators, educational institutions, governments, and enterprises, as well as wireless, wireline, and satellite Internet service providers. The company was formerly known as Ariadne Ltd. and changed its name to Allot Communications Ltd. in September 1997. Allot Communications Ltd. was founded in 1996 and is based in Hod-Hasharon, Israel.
Black Box Company Profile
Black Box Corporation provides digital technology solutions that assist its customers to design, build, manage, and secure their IT infrastructure. It offers IT infrastructure, specialty networking, multimedia, and keyboard/video/mouse switching products. The company also provides communications lifecycle, unified communications, structured cabling, video/AV, in-building wireless, and data center services. It distributes its products and services primarily through value-added resellers, direct marketing manufacturers, mass merchandisers, Web retailers, manufacturers, large system integrators, and other technical services companies. It serves government, healthcare, business services, manufacturing, retail, technology, banking, and other industries worldwide. Black Box Corporation was founded in 1976 and is headquartered in Lawrence, Pennsylvania.
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