RADCOM (NASDAQ:RDCM) and AstroNova (NASDAQ:ALOT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider and Institutional Ownership
26.3% of RADCOM shares are held by institutional investors. Comparatively, 57.4% of AstroNova shares are held by institutional investors. 69.0% of RADCOM shares are held by company insiders. Comparatively, 10.4% of AstroNova shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
RADCOM has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500. Comparatively, AstroNova has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500.
Valuation and Earnings
This table compares RADCOM and AstroNova’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RADCOM||$37.23 million||3.36||$2.90 million||$0.23||40.22|
|AstroNova||$113.40 million||1.15||$3.28 million||$0.63||29.98|
AstroNova has higher revenue and earnings than RADCOM. AstroNova is trading at a lower price-to-earnings ratio than RADCOM, indicating that it is currently the more affordable of the two stocks.
AstroNova pays an annual dividend of $0.28 per share and has a dividend yield of 1.5%. RADCOM does not pay a dividend. AstroNova pays out 44.4% of its earnings in the form of a dividend.
This table compares RADCOM and AstroNova’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for RADCOM and AstroNova, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RADCOM currently has a consensus target price of $12.00, indicating a potential upside of 29.73%. Given RADCOM’s higher probable upside, equities analysts clearly believe RADCOM is more favorable than AstroNova.
RADCOM beats AstroNova on 8 of the 15 factors compared between the two stocks.
RADCOM Company Profile
RADCOM Ltd. provides service assurance and customer experience management solutions for communication service providers (CSPs). Its carrier-grade solutions support mobile and fixed networks, and scale to terabit data bandwidths to enable data analytics. The company offers solutions for virtualized infrastructure and next-generation networks. Its product line includes the MaveriQ, a next-generation probe-based customer and service assurance solution that enables CSPs to carry out end-to-end voice and data quality monitoring, manage their networks and services, and monitor their roaming and interconnect traffic. The company's MaveriQ solution also provides service assurance monitoring applications, including network troubleshooting and quality monitoring, service quality monitoring, customer experience management, customer quality of service monitoring, and customer service level agreements monitoring. In addition, it offers Network Visibility, an automated network function virtualization orchestration solution for onboarding and configuration that enables traffic distribution, load balancing, and end-to-end visibility across virtual networks, as well as provides packet broker capabilities, like packet de-duplication, secure socket layer decryption, and packet slicing. Further, it provides Network Insights, which offers CSPs with full network visibility that allows them to locate and resolve any performance issues. The company sells its products directly, as well as through a network of independent distributors and resellers, and independent representatives worldwide. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was founded in 1985 and is headquartered in Tel Aviv, Israel.
AstroNova Company Profile
AstroNova, Inc. designs, develops, manufactures, and distributes specialty printers, and data acquisition and analysis systems in the United States, Canada, Asia, Europe, Central and South America, and internationally. The company operates through two segments, Product Identification and Test & Measurement (T&M). The Product Identification segment offers tabletop and work cell-ready digital color label printers; specialty OEM printing systems; and labels, tags, inks, toner, and thermal transfer ribbons under the QuickLabel brand. This segment also offers T2-C, an inkjet table top label press; T2, a parent of the T2-C; T4 for print, die cut, and lamination; and T3, a customizable label production and finishing press under the TrojanLabel brand. In addition, this segment sells various specialized software used to operate the printers and presses, design labels, and manage printing on an automated basis. It serves chemicals, cosmetics, food and beverage, medical products, pharmaceuticals, and other industries, as well as brand owners, label converters, commercial printers, and packaging manufacturers. The T&M segment offers visual data from local and networked data streams and sensors; a range of hardware and software products under the AstroNova T&M brand; Daxus portable data acquisition systems; TMX high-speed data acquisition systems; DDX100 SmartCorder portable data acquisition systems; EV-500, a digital strip chart recording system; PTA-45B cockpit printers; and ToughWriter, Miltope, and RITEC branded airborne printers. Its AstroNova airborne printers are used in flight decks, as well as military, commercial, and business aircraft cabins; and ToughSwitch Ethernet switches used in military aircraft and vehicles. The company was formerly known as Astro-Med, Inc. and changed its name to AstroNova, Inc. in May 2016. The company was founded in 1969 and is headquartered in West Warwick, Rhode Island.
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