Critical Contrast: Magal Security Systems (MAGS) & UTStarcom (UTSI)
Magal Security Systems (NASDAQ:MAGS) and UTStarcom (NASDAQ:UTSI) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Valuation & Earnings
This table compares Magal Security Systems and UTStarcom’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Magal Security Systems||$64.29 million||1.91||-$6.91 million||N/A||N/A|
|UTStarcom||$98.29 million||1.28||$6.98 million||$0.22||16.05|
Institutional and Insider Ownership
14.9% of Magal Security Systems shares are owned by institutional investors. Comparatively, 4.4% of UTStarcom shares are owned by institutional investors. 24.4% of Magal Security Systems shares are owned by company insiders. Comparatively, 2.7% of UTStarcom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Magal Security Systems and UTStarcom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magal Security Systems||2.09%||2.37%||1.81%|
Risk and Volatility
Magal Security Systems has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, UTStarcom has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Magal Security Systems and UTStarcom, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magal Security Systems||0||0||0||0||N/A|
UTStarcom has a consensus target price of $5.00, indicating a potential upside of 41.64%. Given UTStarcom’s higher possible upside, analysts clearly believe UTStarcom is more favorable than Magal Security Systems.
Magal Security Systems beats UTStarcom on 6 of the 11 factors compared between the two stocks.
Magal Security Systems Company Profile
Magal Security Systems Ltd. develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and video management systems, and cyber security products and systems worldwide. It operates through three segments: Perimeter Products, Turnkey Projects, and Video and Cyber Security. The company offers perimeter security products that enable customers to monitor, limit, and control access by unauthorized personnel to specific regions or areas. Its perimeter security systems include fence mounted detection systems; detection grids, gates, and fences to protect water passages, VIP residences, and other outdoor applications; buried sensors; hybrid perimeter intrusion detection and intelligent lighting systems; electrical field disturbance sensors; and microwave sensors. The company also provides integrated intelligent video management solutions for security surveillance and business intelligence applications; and cyber-security products for monitoring, securing, and the active management of wired, wireless, and fiber optic communication networks, as well as turnkey solutions. In addition, it offers RoboGuard, a platform that runs on a rail along the perimeter of protected sites; and life safety/duress alarm products to protect personnel in prisons. Further, the company provides MTC-1500I, a dual technology outdoor surveillance system; Fortis4G, a fourth generation command and control system; StarNet 2, a security management system; and Network Manager, a middleware package. Its products are used to protect national borders, military bases, power plants, airports, sea ports, postal facilities, prisons, banks, retail operations, hospitals, municipal security, sporting events, and industrial locations from terrorism, theft, and other security threats. The company sells its products through system integrators and distribution channels. Magal Security Systems Ltd. was founded in 1965 and is headquartered in Yehud, Israel.
UTStarcom Company Profile
UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications worldwide. The company helps network operators to offer communication services for its customers. Its products line include various platforms that leverage its expertise in packet optical communications, routing and switching technologies, broadband access, wireless communications, and synchronization. The company's end-to-end broadband product portfolio, enhanced through in-house software defined networking based orchestration, enables mobile and fixed-line network operators and enterprises to build networks for a range of applications, including mobile backhaul, metro aggregation, broadband access, and Wi-Fi data offload. It is also leveraging its technology expertise to bring smart networked products to new applications, such as its GoBox automated refrigerated dispenser for retail stores. The company was founded in 1991 and is based in Admiralty, Hong Kong.
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