Finisar (NASDAQ: FNSR) and Gilat Satellite Networks (NASDAQ:GILT) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Risk & Volatility
Finisar has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Gilat Satellite Networks has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Finisar and Gilat Satellite Networks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gilat Satellite Networks||0||0||0||0||N/A|
Finisar currently has a consensus target price of $26.68, indicating a potential upside of 49.63%. Given Finisar’s higher probable upside, equities analysts clearly believe Finisar is more favorable than Gilat Satellite Networks.
This table compares Finisar and Gilat Satellite Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gilat Satellite Networks||2.83%||7.58%||4.20%|
Earnings & Valuation
This table compares Finisar and Gilat Satellite Networks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Finisar||$1.45 billion||1.40||$249.34 million||$1.75||10.19|
|Gilat Satellite Networks||$279.55 million||1.51||-$5.34 million||$0.15||51.27|
Finisar has higher revenue and earnings than Gilat Satellite Networks. Finisar 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.
Institutional and Insider Ownership
90.9% of Finisar shares are held by institutional investors. Comparatively, 8.0% of Gilat Satellite Networks shares are held by institutional investors. 1.0% of Finisar shares are held by company insiders. Comparatively, 1.1% of Gilat Satellite Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Finisar beats Gilat Satellite Networks on 11 of the 14 factors compared between the two stocks.
Finisar Corporation (Finisar) is a provider of optical subsystems and components that are used in data communication and telecommunication applications. The Company’s optical subsystems consist of transmitters, receivers, transceivers, transponders and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in these networks, including the switches, routers, and servers used in wireline networks. These products rely on the use of semiconductor lasers and photodetectors in conjunction with integrated circuits and optoelectronic packaging to provide a means for transmitting and receiving digital signals over fiber optic cable at speeds ranging from less than one gigabit per second (Gbps), to more than 100 Gbps, over distances of less than 10 meters to more than 2,000 kilometers, using a range of network protocols and physical configurations.
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.
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