Gilat Satellite Networks (NASDAQ:GILT) vs. Inseego (NASDAQ:INSG) Head-To-Head Analysis

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

Institutional and Insider Ownership

34.2% of Inseego shares are owned by institutional investors. Comparatively, 35.7% of Gilat Satellite Networks shares are owned by institutional investors. 2.0% of Inseego shares are owned by insiders. Comparatively, 1.1% of Gilat Satellite Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Inseego and Gilat Satellite Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inseego	0	2	0	0	2.00
Gilat Satellite Networks	0	0	1	0	3.00

Inseego currently has a consensus target price of $16.00, indicating a potential downside of 12.14%. Gilat Satellite Networks has a consensus target price of $8.50, indicating a potential upside of 74.54%. Given Gilat Satellite Networks’ stronger consensus rating and higher probable upside, analysts plainly believe Gilat Satellite Networks is more favorable than Inseego.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inseego	-20.45%	N/A	-30.16%
Gilat Satellite Networks	6.80%	8.23%	5.49%

Risk & Volatility

Inseego has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares Inseego and Gilat Satellite Networks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inseego	$195.50 million	1.11	-$46.19 million	($4.12)	-4.42
Gilat Satellite Networks	$292.25 million	0.95	$23.50 million	$0.41	11.88

Gilat Satellite Networks has higher revenue and earnings than Inseego. Inseego 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 Inseego on 11 of the 14 factors compared between the two stocks.

About Inseego

Inseego Corp. engages in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions for businesses, consumers, and governments worldwide. The company provides 5G and 4G mobile broadband solutions, such as mobile hotspots under the MiFi brand; and 4G VoLTE products and 4G USB modems. It also offers fixed wireless access solutions, including indoor, outdoor, and industrial routers and gateways. In addition, the company provides Inseego Connect solution for device management; and 5G SD EDGE solution for secure networking enabling corporate managed mobile remote workforce. Further, it offers SaaS solutions, including telematic and asset tracking solution that provides live maps and data to improve driver safety and performance; Inseego Subscribe, a wireless subscriber management solution for carrier’s management of their government and complex enterprise customer subscriptions. The company was founded in 1996 and is based in San Diego, California.

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.