Allot Communications (ALLT) and Its Competitors Critical Review

Allot Communications (NASDAQ: ALLT) is one of 25 public companies in the “Computer & office equipment” industry, but how does it weigh in compared to its rivals? We will compare Allot Communications to related companies based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.

Profitability

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This table compares Allot Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allot Communications -22.04% -7.99% -6.32%
Allot Communications Competitors -2.03% -4.50% 3.28%

Analyst Recommendations

This is a summary of recent ratings for Allot Communications and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allot Communications 0 1 1 0 2.50
Allot Communications Competitors 309 1735 2312 86 2.49

As a group, “Computer & office equipment” companies have a potential upside of 9.88%. Given Allot Communications’ rivals higher probable upside, analysts plainly believe Allot Communications has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

54.2% of Allot Communications shares are held by institutional investors. Comparatively, 54.5% of shares of all “Computer & office equipment” companies are held by institutional investors. 13.3% of shares of all “Computer & office equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Allot Communications and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Allot Communications $81.99 million -$18.07 million -14.77
Allot Communications Competitors $12.01 billion $456.58 million 18.46

Allot Communications’ rivals have higher revenue and earnings than Allot Communications. Allot Communications is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Allot Communications has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Allot Communications’ rivals have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Summary

Allot Communications rivals beat Allot Communications on 11 of the 12 factors compared.

About Allot Communications

Allot Communications Ltd. provides visibility, intelligence, security, and monetization solutions that enable service providers and enterprises to protect and personalize the digital experience worldwide. The company offers various platforms, including Allot Service Gateway 9500, Allot Service Gateway Tera, Allot Service Gateway, and Allot NetEnforcer for in-line deployment in traditional and virtualized network access infrastructure. It also provides subscriber management platforms, such as Allot TierManager, Allot QuotaManager, Allot ChargeSmart, and Allot Smart Engage Onboarding that drive centralized creation, provisioning, and pricing of subscriber services; and analytics solutions comprising Allot ClearSee Analytics and Allot ClearSee Data Source that analyze traffic data. In addition, the company offers security solutions comprising Allot WebSafe Personal, Allot WebSafe, Allot WebSafe Business, Allot Service Protector, Allot Content Protector, and Allot SpamOut Protector for protecting network service integrity and brand reputation. Further, it offers centralized management solutions, such as NetXplorer Analytics and Reporting, NetXplorer Data Collector, NetAccounting Server, and NetPolicy Provisioner for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. Allot Communications Ltd. markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and cable operators, educational institutions, governments, and enterprises, as well as wireless, wireline, and satellite Internet service providers. The company was formerly known as Ariadne Ltd. and changed its name to Allot Communications Ltd. in September 1997. Allot Communications Ltd. was founded in 1996 and is based in Hod-Hasharon, Israel.

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