Reviewing B.O.S. Better Online Solutions (NASDAQ:BOSC) and NETGEAR (NASDAQ:NTGR)

B.O.S. Better Online Solutions (NASDAQ:BOSC) and NETGEAR (NASDAQ:NTGR) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares B.O.S. Better Online Solutions and NETGEAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B.O.S. Better Online Solutions	6.66%	19.16%	12.00%
NETGEAR	3.72%	-7.63%	-4.85%

Risk and Volatility

B.O.S. Better Online Solutions has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, NETGEAR has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Institutional and Insider Ownership

15.1% of B.O.S. Better Online Solutions shares are held by institutional investors. Comparatively, 83.0% of NETGEAR shares are held by institutional investors. 4.3% of B.O.S. Better Online Solutions shares are held by company insiders. Comparatively, 2.3% of NETGEAR shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares B.O.S. Better Online Solutions and NETGEAR”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B.O.S. Better Online Solutions	$39.95 million	0.71	$2.30 million	$0.49	9.78
NETGEAR	$673.76 million	1.13	$12.36 million	$0.82	32.39

NETGEAR has higher revenue and earnings than B.O.S. Better Online Solutions. B.O.S. Better Online Solutions is trading at a lower price-to-earnings ratio than NETGEAR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for B.O.S. Better Online Solutions and NETGEAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B.O.S. Better Online Solutions	0	0	0	0	0.00
NETGEAR	0	0	1	0	3.00

NETGEAR has a consensus target price of $29.00, suggesting a potential upside of 9.19%. Given NETGEAR’s stronger consensus rating and higher probable upside, analysts plainly believe NETGEAR is more favorable than B.O.S. Better Online Solutions.

Summary

NETGEAR beats B.O.S. Better Online Solutions on 10 of the 14 factors compared between the two stocks.

About B.O.S. Better Online Solutions

B.O.S. Better Online Solutions Ltd. provides intelligent robotics, radio frequency identification (RFID), and supply chain solutions for enterprises worldwide. The Intelligent Robotics Division provides custom-made machines for industrial automation and assembly of products and packing that offer technological solutions. The RFID Division provides hardware products, such as thermal and barcode printers; RFID and barcode scanners and readers; wireless, mobile, and forklift terminals; wireless infrastructure; active and passive RFID tags; ribbons, labels, and tags; and RFID systems for libraries. It also develops Warehouse Management System, a data collection solution for logistics management in logistic centers and warehouses; RFID-based systems for tracking inventory in a produce packing house; automatic systems for industrial packing lines; automatic systems to track the production line; and automatic systems to identify and track vehicles for transportation-related settings. In addition, this segment provides maintenance and repair services for data collection equipment, as well as warehouse and on-site service plans; on-site inventory count services in various fields; and asset tagging and counting services for corporate and governmental entities. The Supply Chain Division offers electro-mechanical components, electronics components, communications products, and components consolidation services to aerospace, defense, and other industries. This segment also provides inventory and quality control management of components entering production lines; and inventory management services for ongoing projects, including warehouse functions. The company markets its products through direct sales and sales agents, as well as through distributors. B.O.S. Better Online Solutions Ltd. was incorporated in 1990 and is headquartered in Rishon LeZion, Israel.

About NETGEAR

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.