Critical Comparison: Genasys (GNSS) & Its Competitors

Genasys (NASDAQ:GNSS) is one of 111 publicly-traded companies in the “Communications Equipment” industry, but how does it compare to its peers? We will compare Genasys to similar businesses based on the strength of its analyst recommendations, dividends, earnings, valuation, risk, institutional ownership and profitability.

Volatility & Risk

Genasys has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Genasys’ peers have a beta of 1.16, suggesting that their average stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Genasys and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genasys	1	0	2	0	2.33
Genasys Competitors	1024	3923	6885	361	2.54

Genasys presently has a consensus target price of $4.50, suggesting a potential upside of 158.62%. As a group, “Communications Equipment” companies have a potential upside of 23.42%. Given Genasys’ higher probable upside, equities analysts clearly believe Genasys is more favorable than its peers.

Institutional & Insider Ownership

40.0% of Genasys shares are held by institutional investors. Comparatively, 43.7% of shares of all “Communications Equipment” companies are held by institutional investors. 8.3% of Genasys shares are held by insiders. Comparatively, 19.1% of shares of all “Communications Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Genasys and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Genasys	$40.76 million	-$18.11 million	-10.24
Genasys Competitors	$2.55 billion	$335.97 million	5.57

Genasys’ peers have higher revenue and earnings than Genasys. Genasys is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Genasys and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genasys	-13.44%	-314.53%	-12.76%
Genasys Competitors	2.86%	-8.35%	2.51%

Summary

Genasys peers beat Genasys on 11 of the 13 factors compared.

Genasys Company Profile

Genasys Inc. engages in the design, development, and commercialization of critical communications hardware and software solutions to alert, inform, and protect people principally in North and South America, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Hardware and Software. It provides Genasys Protect ALERT, an interactive, cloud-based SaaS solution that is designed to enable SLED and enterprise customers to send critical information to at-risk individuals or groups when an emergency occurs using emails, voice calls, text messages, panic buttons, desktop alerts, TV, social media, and other; and Genasys Protect EVAC that enables responding agencies to determine and communicate the proper scope of a response or evacuation by replacing guesswork with data-driven intelligence; and Genasys Protect CONNECT, an instant communication platform that enables first responders and public safety personnel to collaborate and share information in a single space with text, videos, images, and audio from any location. The company also offers Genasys Protect ACOUSTICS, a mass notification speaker system with Genasys protect command-and-control software; and long range acoustic devices, such as acoustic hailing devices which are used to project alert tones and audible voice messages. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. was incorporated in 1992 and is based in San Diego, California.