Critical Review: KVH Industries (KVHI) versus Rada Electronics Industries Limited (RADA)
KVH Industries (NASDAQ: KVHI) and Rada Electronics Industries Limited (NASDAQ:RADA) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Risk and Volatility
KVH Industries has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Rada Electronics Industries Limited has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.
This table compares KVH Industries and Rada Electronics Industries Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rada Electronics Industries Limited||-3.41%||-6.71%||-3.45%|
Earnings & Valuation
This table compares KVH Industries and Rada Electronics Industries Limited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|KVH Industries||$170.44 million||1.18||$8.14 million||($0.67)||-17.61|
|Rada Electronics Industries Limited||$15.04 million||3.21||-$1.46 million||($0.05)||-44.40|
KVH Industries has higher revenue and earnings than Rada Electronics Industries Limited. Rada Electronics Industries Limited is trading at a lower price-to-earnings ratio than KVH Industries, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for KVH Industries and Rada Electronics Industries Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rada Electronics Industries Limited||0||0||0||0||N/A|
KVH Industries presently has a consensus price target of $9.50, suggesting a potential downside of 19.49%. Given KVH Industries’ higher probable upside, equities analysts clearly believe KVH Industries is more favorable than Rada Electronics Industries Limited.
Institutional & Insider Ownership
64.2% of KVH Industries shares are held by institutional investors. Comparatively, 0.9% of Rada Electronics Industries Limited shares are held by institutional investors. 11.1% of KVH Industries shares are held by insiders. Comparatively, 1.0% of Rada Electronics Industries Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
KVH Industries beats Rada Electronics Industries Limited on 9 of the 12 factors compared between the two stocks.
About KVH Industries
KVH Industries, Inc. is a manufacturer of solutions that provide high-speed Internet, television and voice services through satellite to mobile users at sea and on land. The Company also provides commercially licensed entertainment, including news, sports, music and movies, to commercial and leisure customers in the maritime, hotel and retail markets. It operates in two geographic segments, in the mobile communications, navigation and guidance and stabilization equipment industry. The Company develops and distributes training films and e-learning computer-based training courses to commercial maritime customers. It is also a manufacturer of navigational sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. It designs, develops, manufactures and markets mobile communications products and services for the marine and land mobile markets, and navigation, guidance and stabilization products for both the commercial and defense markets.
About Rada Electronics Industries Limited
RADA Electronic Industries Ltd. is an aviation and defense company. The Company develops, manufactures and sells defense electronics, including, avionics solutions (including avionics for unmanned aerial vehicles (UAVs)), airborne data/video recording and management systems, inertial navigation systems and tactical land radars for defense forces and border protection systems. The Company’s product lines include Military avionics (Data/video recorders, core avionics for aircraft and UAVs); Inertial navigation systems (INS) for aerial and land platforms, and Tactical Radars for defense forces and border protection systems (land-based). The Company’s INS products are used by multiple combat platforms and weapon systems. The Company develops ground radars for tactical applications, such as defense forces protection and border protection. Its products are primarily sold to governmental agencies, governmental authorities and government-owned companies.
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