Analyzing Gilat Satellite Networks (GILT) and EMCORE Corporation (EMKR)
Gilat Satellite Networks (NASDAQ: GILT) and EMCORE Corporation (NASDAQ:EMKR) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
This table compares Gilat Satellite Networks and EMCORE Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gilat Satellite Networks||1.27%||6.59%||3.70%|
This is a breakdown of current ratings for Gilat Satellite Networks and EMCORE Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gilat Satellite Networks||0||0||0||0||N/A|
EMCORE Corporation has a consensus target price of $11.50, indicating a potential upside of 25.68%. Given EMCORE Corporation’s higher possible upside, analysts clearly believe EMCORE Corporation is more favorable than Gilat Satellite Networks.
Earnings & Valuation
This table compares Gilat Satellite Networks and EMCORE Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gilat Satellite Networks||$289.16 million||1.04||$25.44 million||$0.07||78.43|
|EMCORE Corporation||$119.32 million||2.06||$13.00 million||$0.30||30.50|
Gilat Satellite Networks has higher revenue and earnings than EMCORE Corporation. EMCORE Corporation 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.
Volatility & Risk
Gilat Satellite Networks has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, EMCORE Corporation has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.
Institutional and Insider Ownership
8.0% of Gilat Satellite Networks shares are held by institutional investors. Comparatively, 76.1% of EMCORE Corporation shares are held by institutional investors. 1.1% of Gilat Satellite Networks shares are held by insiders. Comparatively, 0.8% of EMCORE Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
EMCORE Corporation beats Gilat Satellite Networks on 9 of the 13 factors compared between the two stocks.
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.
About EMCORE Corporation
EMCORE Corporation is engaged in designing and manufacturing indium phosphide (InP) optical chips, components, subsystems and systems for the broadband and specialty fiber optics market. The Company focuses on linear fiber optic transmission technology. The Company operates through Fiber Optics segment. The Company provides optical components, and also end-to-end solutions for high-speed communications network infrastructures. The Company’s optical technologies are designed for cable television (CATV) and fiber-to-the-premise (FTTP) networks, telecommunications and data centers, satellite communications, aerospace and defense, wireless networks, and broadcast and professional audio/video systems. The Company’s fiber optics products enable information that is modulated on light signals to be transmitted, routed (switched) and received in communication systems and networks.
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