Contrasting Veea (NASDAQ:VEEA) and Gilat Satellite Networks (NASDAQ:GILT)

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

Valuation and Earnings

This table compares Veea and Gilat Satellite Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veea	$220,000.00	28.23	-$6.66 million	($0.26)	-0.47
Gilat Satellite Networks	$451.66 million	1.72	$20.72 million	$0.44	23.98

Gilat Satellite Networks has higher revenue and earnings than Veea. Veea 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.

Insider and Institutional Ownership

25.9% of Veea shares are owned by institutional investors. Comparatively, 35.7% of Gilat Satellite Networks shares are owned by institutional investors. 60.8% of Veea shares are owned by insiders. Comparatively, 1.1% of Gilat Satellite Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Veea and Gilat Satellite Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veea	1	0	0	0	1.00
Gilat Satellite Networks	0	2	1	1	2.75

Gilat Satellite Networks has a consensus price target of $20.00, suggesting a potential upside of 89.57%. Given Gilat Satellite Networks’ stronger consensus rating and higher probable upside, analysts plainly believe Gilat Satellite Networks is more favorable than Veea.

Risk & Volatility

Veea has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veea	N/A	N/A	-41.65%
Gilat Satellite Networks	6.21%	10.12%	6.79%

Summary

Gilat Satellite Networks beats Veea on 13 of the 15 factors compared between the two stocks.

About Veea

Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.

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.