ARRIS International (ARRS) & Gilat Satellite Networks (GILT) Critical Survey

ARRIS International (NASDAQ: ARRS) and Gilat Satellite Networks (NASDAQ:GILT) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations for ARRIS International and Gilat Satellite Networks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARRIS International 0 2 5 0 2.71
Gilat Satellite Networks 0 0 0 0 N/A

ARRIS International presently has a consensus price target of $33.57, indicating a potential upside of 15.37%. Given ARRIS International’s higher probable upside, equities analysts clearly believe ARRIS International is more favorable than Gilat Satellite Networks.

Institutional & Insider Ownership

87.0% of ARRIS International shares are owned by institutional investors. Comparatively, 8.0% of Gilat Satellite Networks shares are owned by institutional investors. 0.9% of ARRIS International shares are owned by insiders. Comparatively, 1.1% of Gilat Satellite Networks shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares ARRIS International and Gilat Satellite Networks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
ARRIS International $6.83 billion 0.80 $18.10 million $0.87 33.45
Gilat Satellite Networks $279.55 million 1.49 -$5.34 million $0.15 50.60

ARRIS International has higher revenue and earnings than Gilat Satellite Networks. ARRIS International is trading at a lower price-to-earnings ratio than Gilat Satellite Networks, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

ARRIS International has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares ARRIS International and Gilat Satellite Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARRIS International 2.51% 14.02% 5.89%
Gilat Satellite Networks 2.83% 7.58% 4.20%

Summary

ARRIS International beats Gilat Satellite Networks on 9 of the 13 factors compared between the two stocks.

About ARRIS International

ARRIS International plc is a media entertainment and data communications solutions provider. The Company operates in two segments: Customer Premises Equipment (CPE), and Network & Cloud (N&C). The Company enables service providers, including cable, telephone, and digital broadcast satellite operators, and media programmers to deliver media, voice and Internet Protocol (IP) data services to their subscribers. It is engaged in offering set-tops, digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms, and associated data and voice CPE, which it also sells directly to consumers through retail channels. Its solutions are complemented by an array of services, including technical support, repair and refurbishment, and system design and integration. The CPE segment consists of CPE Products-Video and CPE Products-Broadband. The N&C segment consists of Infrastructure Products, Cloud Software and Global Services.

About Gilat Satellite Networks

Gilat Satellite Networks Ltd. is a provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-Move/on-the-Pause terminals and modems. The Company’s equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations and enterprises.

What are top analysts saying about ARRIS International PLC? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for ARRIS International PLC and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit