Allot (NASDAQ:ALLT) versus u-blox (OTCMKTS:UBLXF) Financial Analysis

u-blox (OTCMKTS:UBLXF) and Allot (NASDAQ:ALLT) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares u-blox and Allot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
u-blox	N/A	N/A	N/A
Allot	9.40%	9.64%	5.99%

Earnings and Valuation

This table compares u-blox and Allot”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
u-blox	N/A	N/A	N/A	$3.99	42.61
Allot	$108.95 million	3.50	$3.70 million	$0.22	35.59

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

Analyst Ratings

This is a summary of current recommendations for u-blox and Allot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
u-blox	0	0	0	0	0.00
Allot	1	1	5	0	2.57

Allot has a consensus target price of $13.38, suggesting a potential upside of 70.82%. Given Allot’s stronger consensus rating and higher possible upside, analysts clearly believe Allot is more favorable than u-blox.

Institutional and Insider Ownership

32.3% of u-blox 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 company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Allot beats u-blox on 9 of the 11 factors compared between the two stocks.

About u-blox

u-blox Holding AG develops, manufactures, and markets products and services supporting GPS/GNSS satellite positioning systems for the automotive, industrial, and consumer markets in Europe, the Middle East, Africa, the United States, and the Asia Pacific. It operates through two segments, Positioning and Wireless Products, and Wireless Services. The company develops and sells chips and modules to locate and connect devices. In addition, it offers a range of GPS/GNSS positioning products, including satellite receiver chips, chips, receiver modules, receiver boards, antennas, and smart antennas for navigation, automatic vehicle location, security, traffic control, location-based services, timing, and agriculture. u-blox Holding AG was founded in 1997 and is based in Thalwil, Switzerland.

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.