Analyzing Vocera Communications (VCRA) & Gilat Satellite Networks (NASDAQ:GILT)

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

Analyst Ratings

This is a breakdown of current ratings for Vocera Communications and Gilat Satellite Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vocera Communications 0 0 6 0 3.00
Gilat Satellite Networks 0 0 0 0 N/A

Vocera Communications currently has a consensus price target of $32.83, suggesting a potential upside of 14.16%. Given Vocera Communications’ higher probable upside, equities analysts plainly believe Vocera Communications is more favorable than Gilat Satellite Networks.

Insider & Institutional Ownership

7.9% of Gilat Satellite Networks shares are held by institutional investors. 6.3% of Vocera Communications shares are held by company insiders. Comparatively, 1.1% of Gilat Satellite Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Vocera Communications has a beta of -0.42, indicating that its share price is 142% less volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares Vocera Communications and Gilat Satellite Networks’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vocera Communications $127.70 million 6.58 -$17.26 million ($0.95) -30.27
Gilat Satellite Networks $279.55 million 1.45 -$5.34 million $0.15 49.53

Gilat Satellite Networks has higher revenue and earnings than Vocera Communications. Vocera Communications 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Vocera Communications -17.42% -15.55% -8.71%
Gilat Satellite Networks 2.83% 7.58% 4.20%

Summary

Gilat Satellite Networks beats Vocera Communications on 8 of the 12 factors compared between the two stocks.

About Vocera Communications

Vocera Communications, Inc. is a provider of communication solutions for mobile workers in healthcare, hospitality, energy, education and other industries. The Company’s segments include Product and Service. The Company’s solutions include the Vocera Communication System, Vocera Care Experience, Vocera Engage integration platform, smartphone applications and its Experience Innovation Network. The Company’s Vocera Communication System consists of a software platform that connects communication devices, including its hands-free, wearable, voice-controlled communication badges, and third-party mobile devices that use its software applications to become part of the Vocera system. Its Vocera Collaboration Suite combines calling, texting, alerting and content distribution capabilities of Vocera into a smartphone application. Its Vocera Secure Texting is an alternative to non-secure short message service (SMS) texting.

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.

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