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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gilat Satellite Networks and Lantronix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gilat Satellite Networks 0 0 0 0 N/A
Lantronix 0 0 1 0 3.00

Lantronix has a consensus price target of $4.00, indicating a potential upside of 98.02%. Given Lantronix’s higher possible upside, analysts plainly believe Lantronix is more favorable than Gilat Satellite Networks.

Profitability

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

Net Margins Return on Equity Return on Assets
Gilat Satellite Networks 2.83% 7.58% 4.20%
Lantronix -1.83% 2.39% 1.64%

Insider & Institutional Ownership

7.9% of Gilat Satellite Networks shares are held by institutional investors. Comparatively, 16.5% of Lantronix shares are held by institutional investors. 1.1% of Gilat Satellite Networks shares are held by company insiders. Comparatively, 52.4% of Lantronix shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Gilat Satellite Networks and Lantronix’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gilat Satellite Networks $279.55 million 1.52 -$5.34 million $0.15 51.67
Lantronix $44.73 million 0.81 -$270,000.00 ($0.05) -40.40

Lantronix has lower revenue, but higher earnings than Gilat Satellite Networks. Lantronix 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.

Volatility & Risk

Gilat Satellite Networks has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Lantronix has a beta of -0.2, suggesting that its share price is 120% less volatile than the S&P 500.

Summary

Gilat Satellite Networks beats Lantronix on 7 of the 13 factors compared between the two stocks.

About Gilat Satellite Networks

Gilat Satellite Networks Ltd. is a provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-Move/on-the-Pause terminals and modems. The Company’s equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations and enterprises.

About Lantronix

Lantronix, Inc. is a provider of secure data access and management solutions for Internet of things (IoT) and information technology (IT) assets. The Company organizes its products and solutions into three product lines, including IoT, IT Management and Other. Its IoT products consist of IoT Gateways and IoT Building Blocks. The Company’s IT Management product line includes console management, power management and keyboard video mouse (KVM), products that provide remote out-of-band management (OOBM) access to IT and networking infrastructure deployed in test labs, data centers and server rooms. Its Other product line includes non-focus products, such as the xPrintServer, xSenso and WiBox. Its connectivity solutions serves a range of industries, including data center, medical, security, environmental and government. The Company conducts its business in approximately three geographic regions, including the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific Japan (APJ).

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