V2X (NYSE:VVX) and Allot (NASDAQ:ALLT) Critical Contrast

V2X (NYSE:VVX) and Allot (NASDAQ:ALLT) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

95.2% of V2X shares are owned by institutional investors. Comparatively, 51.5% of Allot shares are owned by institutional investors. 1.0% of V2X shares are owned by insiders. Comparatively, 3.4% of Allot shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares V2X and Allot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
V2X	1.88%	16.94%	5.74%
Allot	5.68%	7.38%	4.70%

Earnings and Valuation

This table compares V2X and Allot”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
V2X	$4.48 billion	0.58	$77.88 million	$2.79	29.92
Allot	$101.99 million	4.11	$3.70 million	$0.13	66.23

V2X has higher revenue and earnings than Allot. V2X is trading at a lower price-to-earnings ratio than Allot, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

V2X has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Allot has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for V2X and Allot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
V2X	1	3	6	1	2.64
Allot	1	1	5	0	2.57

V2X currently has a consensus price target of $80.60, suggesting a potential downside of 3.45%. Allot has a consensus price target of $13.63, suggesting a potential upside of 58.25%. Given Allot’s higher probable upside, analysts clearly believe Allot is more favorable than V2X.

Summary

V2X beats Allot on 9 of the 15 factors compared between the two stocks.

About V2X

V2X, Inc. provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.

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.