Genasys (NASDAQ:GNSS – Get Free Report) and Silicom (NASDAQ:SILC – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Volatility & Risk
Genasys has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Silicom has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.
Valuation and Earnings
This table compares Genasys and Silicom”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genasys | $40.76 million | 1.65 | -$18.11 million | ($0.13) | -11.38 |
| Silicom | $61.93 million | 4.90 | -$11.48 million | ($1.71) | -30.87 |
Silicom has higher revenue and earnings than Genasys. Silicom is trading at a lower price-to-earnings ratio than Genasys, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Genasys and Silicom, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genasys | 1 | 0 | 2 | 0 | 2.33 |
| Silicom | 1 | 0 | 1 | 0 | 2.00 |
Genasys presently has a consensus target price of $3.87, suggesting a potential upside of 161.26%. Silicom has a consensus target price of $60.00, suggesting a potential upside of 13.68%. Given Genasys’ stronger consensus rating and higher probable upside, equities analysts plainly believe Genasys is more favorable than Silicom.
Insider and Institutional Ownership
40.0% of Genasys shares are held by institutional investors. Comparatively, 52.8% of Silicom shares are held by institutional investors. 8.3% of Genasys shares are held by insiders. Comparatively, 25.4% of Silicom shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Genasys and Silicom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genasys | -10.86% | -435.06% | -9.83% |
| Silicom | -12.98% | -8.37% | -6.26% |
Summary
Silicom beats Genasys on 8 of the 14 factors compared between the two stocks.
About Genasys
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.
About Silicom
Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for servers, server-based systems, and communications devices. It offers server network interface cards; and smart cards, such as smart server adapters, which include redirector and switching cards, encryption and data compression hardware acceleration cards, forward error correction acceleration and offloading cards, time synchronization cards, and field programmable gate array-based cards. The company also provides virtualized and universal customer-premises equipment; and edge devices for SD-WAN, secure access service edge, Telco dedicated routers, and NFV deployments. It serves original equipment manufacturing, cloud, telco, mobile, and related service provider markets. The company operates in the United States, North America, Israel, Europe, and the Asia Pacific. Silicom Ltd. was incorporated in 1987 and is headquartered in Kfar Saba, Israel.
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