Head-To-Head Review: KVH Industries (NASDAQ:KVHI) and AltiGen Communications (OTCMKTS:ATGN)

KVH Industries (NASDAQ:KVHI) and AltiGen Communications (OTCMKTS:ATGN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for KVH Industries and AltiGen Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KVH Industries	1	0	0	0	1.00
AltiGen Communications	0	0	0	0	0.00

Volatility & Risk

KVH Industries has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, AltiGen Communications has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

73.7% of KVH Industries shares are owned by institutional investors. 21.1% of KVH Industries shares are owned by insiders. Comparatively, 14.0% of AltiGen Communications shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares KVH Industries and AltiGen Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KVH Industries	$113.83 million	1.17	-$11.05 million	($0.62)	-10.98
AltiGen Communications	$13.87 million	0.87	$740,000.00	$0.02	23.37

AltiGen Communications has lower revenue, but higher earnings than KVH Industries. KVH Industries is trading at a lower price-to-earnings ratio than AltiGen Communications, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares KVH Industries and AltiGen Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KVH Industries	-11.19%	-5.32%	-4.77%
AltiGen Communications	5.33%	7.07%	5.91%

Summary

AltiGen Communications beats KVH Industries on 7 of the 12 factors compared between the two stocks.

About KVH Industries

KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network management software for maritime communications; CommBox Edge, an advanced maritime network optimization and management solution; Starlink, a companion terminal for TracNet and TracPhone systems; KVH ONE, a global hybrid communication network supporting Internet, VoIP, content delivery, and other; and TracVision, a satellite television antenna system for vessels, recreational vehicles, buses, conversion vans, and automobiles. In addition, the company offers KVH Elite, a streaming service for leisure yachts; KVH OneCare, a services and support for TracNet and TracPhone systems; MOVIElink, a movie distribution solution; MUSIClink, a music and karaoke delivery solution; NEWSlink, a maritime news delivery solution; SPORTSlink, a sporting content delivery solution; TVlink, a television programming delivery solution; and news from home, a digital newspaper service. It sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles. The company was founded in 1982 and is headquartered in Middletown, Rhode Island.

About AltiGen Communications

Altigen Communications, Inc. designs, develops, markets, and supports integrated communications solutions worldwide. It provides MaxCS IP-PBX, a software-based phone system that provides customers with business communications solutions; MaxACD Voice Over Internet Protocol (VoIP) Contact Center, a software-based automatic call distribution engine, which offers call routing and call distribution options; MaxMobile that extends a set of business PBX functionality to smart phone devices; and MaxCommunicator, a Windows-based desktop application, which provides call control and visual voice mail management to the desktop. The company offers MaxAgent, a Windows-based desktop application to bring call control and workgroup information to call center agents; MaxSupervisor, a Windows-based desktop application for call center supervisors; and MaxACD for Skype, a call center solution. In addition, it provides hosted services, which include hosted IP PBX, Skype for Business, session initiation protocol trunk, call center solution, voice and video calling, conference calling, and various long-distance services; and software assurance services, which offer customers with software updates, patches, new releases, and technical support for the applications they are licensed to use. The company serves financial services, healthcare, retail, and business services industries through a channel of distributors and resellers. Altigen Communications, Inc. was incorporated in 1994 and is based in Milpitas, California.