Allot Communications (ALLT) versus Juniper Networks (JNPR) Head to Head Review

Allot Communications (NASDAQ: ALLT) and Juniper Networks (NYSE:JNPR) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

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This is a breakdown of current recommendations and price targets for Allot Communications and Juniper Networks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allot Communications 0 1 1 0 2.50
Juniper Networks 3 16 9 0 2.21

Juniper Networks has a consensus price target of $28.26, suggesting a potential upside of 16.06%. Given Juniper Networks’ higher probable upside, analysts plainly believe Juniper Networks is more favorable than Allot Communications.

Insider and Institutional Ownership

53.8% of Allot Communications shares are owned by institutional investors. Comparatively, 95.5% of Juniper Networks shares are owned by institutional investors. 2.6% of Juniper Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Allot Communications has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Juniper Networks has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares Allot Communications and Juniper Networks’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allot Communications $81.99 million 2.16 -$18.07 million ($0.35) -15.06
Juniper Networks $5.03 billion 1.67 $306.20 million $1.73 14.08

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

Profitability

This table compares Allot Communications and Juniper Networks’ 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%
Juniper Networks 6.26% 13.34% 6.83%

Dividends

Juniper Networks pays an annual dividend of $0.72 per share and has a dividend yield of 3.0%. Allot Communications does not pay a dividend. Juniper Networks pays out 41.6% of its earnings in the form of a dividend.

Summary

Juniper Networks beats Allot Communications on 12 of the 15 factors compared between the two stocks.

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.

About Juniper Networks

Juniper Networks, Inc. designs, develops, and sells network products and services worldwide. The company offers various routing products, such as ACX series universal access routers to deploy new high-bandwidth services; MX series Ethernet routers that functions as a universal edge platform; PTX series packet transport routers; cloud customer premises equipment; and NorthStar controllers. It also provides switching products, including EX series Ethernet switches to address the access, aggregation, and core layer switching requirements of micro branch, branch office, and campus and data center environments; and QFX series of core, spine, and top-of-rack data center switches. In addition, the company offers security products comprising SRX series services gateways for the data centers; Branch SRX family that includes SRX300 Series and SRX1500, which provides integrated firewall capabilities; vSRX Virtual Firewall that delivers various features of physical firewalls; and Sky Advanced Threat Prevention, a cloud-based service for static and dynamic analysis. Further, it offers Junos OS, a network operating system; Contrail networking and cloud platform, which provides an open-source and standards-based platform for SDN and NFV; Junos Space, a network management platform for creating network management applications that include network director, services activation director, security director, edge services director, service now, and service insight; and AppFormix, an optimization and management software platform for public, private, and hybrid clouds. Additionally, the company provides technical support and professional services, as well as education and training programs. It sells its products through direct sales, distributors, value-added resellers, and original equipment manufacturer partners to end-users in the cloud, telecom/cable, and strategic enterprise markets. Juniper Networks, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.

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