Head-To-Head Analysis: Allot (NASDAQ:ALLT) versus Arbe Robotics (NASDAQ:ARBE)

Arbe Robotics (NASDAQ:ARBE) and Allot (NASDAQ:ALLT) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares Arbe Robotics and Allot”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbe Robotics	$1.03 million	72.39	-$45.17 million	($0.41)	-1.67
Allot	$101.99 million	3.04	$3.70 million	$0.08	79.88

Allot has higher revenue and earnings than Arbe Robotics. Arbe Robotics is trading at a lower price-to-earnings ratio than Allot, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

33.4% of Arbe Robotics shares are owned by institutional investors. Comparatively, 51.5% of Allot shares are owned by institutional investors. 3.4% of Allot shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Arbe Robotics and Allot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arbe Robotics	-4,402.73%	-81.52%	-57.75%
Allot	3.63%	6.35%	3.70%

Volatility & Risk

Arbe Robotics has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Allot has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbe Robotics	1	0	3	0	2.50
Allot	1	1	5	0	2.57

Arbe Robotics presently has a consensus price target of $2.25, indicating a potential upside of 229.48%. Allot has a consensus price target of $13.13, indicating a potential upside of 105.40%. Given Arbe Robotics’ higher probable upside, equities analysts plainly believe Arbe Robotics is more favorable than Allot.

Summary

Allot beats Arbe Robotics on 12 of the 14 factors compared between the two stocks.

About Arbe Robotics

Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.

About Allot

Allot Communications Ltd. is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Their solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Their industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe.