Arbe Robotics (NASDAQ:ARBE) vs. Allot (NASDAQ:ALLT) Financial Review

Allot (NASDAQ:ALLT) and Arbe Robotics (NASDAQ:ARBE) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent recommendations for Allot and Arbe Robotics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allot	1	1	5	0	2.57
Arbe Robotics	1	0	3	0	2.50

Allot presently has a consensus price target of $13.13, indicating a potential upside of 97.96%. Arbe Robotics has a consensus price target of $2.25, indicating a potential upside of 248.19%. Given Arbe Robotics’ higher probable upside, analysts plainly believe Arbe Robotics is more favorable than Allot.

Insider and Institutional Ownership

51.5% of Allot shares are held by institutional investors. Comparatively, 33.4% of Arbe Robotics shares are held by institutional investors. 3.4% of Allot shares are held by insiders. Comparatively, 53.5% of Arbe Robotics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Allot and Arbe Robotics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allot	$101.99 million	3.15	$3.70 million	$0.08	82.88
Arbe Robotics	$1.03 million	68.50	-$45.17 million	($0.41)	-1.58

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

Volatility and Risk

Allot has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares Allot and Arbe Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allot	3.63%	6.35%	3.70%
Arbe Robotics	-4,402.73%	-81.52%	-57.75%

Summary

Allot beats Arbe Robotics on 11 of the 14 factors compared between the two stocks.

About Allot

Allot Communications Ltd. is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Their solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Their industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe.

About Arbe Robotics

Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.