NETGEAR (NASDAQ:NTGR) vs. Intrusion (NASDAQ:INTZ) Critical Survey

NETGEAR (NASDAQ:NTGR) and Intrusion (NASDAQ:INTZ) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Earnings and Valuation

This table compares NETGEAR and Intrusion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETGEAR	$673.76 million	1.16	$12.36 million	$2.16	12.50
Intrusion	$5.77 million	6.21	-$7.79 million	($0.92)	-1.96

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

Volatility & Risk

NETGEAR has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Intrusion has a beta of -1.5, indicating that its share price is 250% less volatile than the S&P 500.

Profitability

This table compares NETGEAR and Intrusion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETGEAR	9.13%	-3.24%	-2.09%
Intrusion	-119.32%	-154.60%	-61.19%

Insider and Institutional Ownership

83.0% of NETGEAR shares are owned by institutional investors. Comparatively, 19.4% of Intrusion shares are owned by institutional investors. 2.3% of NETGEAR shares are owned by company insiders. Comparatively, 10.4% of Intrusion shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for NETGEAR and Intrusion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETGEAR	0	0	2	0	3.00
Intrusion	0	1	1	0	2.50

NETGEAR currently has a consensus price target of $32.00, suggesting a potential upside of 18.52%. Intrusion has a consensus price target of $6.50, suggesting a potential upside of 261.11%. Given Intrusion’s higher probable upside, analysts plainly believe Intrusion is more favorable than NETGEAR.

Summary

NETGEAR beats Intrusion on 11 of the 14 factors compared between the two stocks.

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.

About Intrusion

Intrusion Inc., a cybersecurity company in the United States. The company offers its customers access to threat intelligence database, which contains the historical data, known associations, and reputational behavior of Internet Protocol addresses. It offers INTRUSION Shield, a zero trust reputation-based Software as a Service solution that inspects and kills dangerous network connections. The company also provides INTRUSION TraceCop, a big data tool that contains an inventory of network selectors and enrichments to support forensic investigations; and INTRUSION Savant, a network monitoring solution that uses the data available in TraceCop to identify suspicious traffic in real-time. In addition, it engages in the provision of pre-and post-sales support services, such as network security design, system installation, and technical consulting services. The company serves US federal government entities, state and local government entities, and companies ranging from mid-market to large enterprises through a direct sales force and value-added resellers. The company was formerly known as Intrusion.com, Inc. and changed its name to Intrusion Inc. in November 2001. Intrusion Inc. was founded in 1983 and is headquartered in Plano, Texas.