Allot (NASDAQ:ALLT – Get Free Report) and Arbe Robotics (NASDAQ:ARBE – Get Free Report) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Volatility & Risk
Allot has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
Earnings and Valuation
This table compares Allot and Arbe Robotics”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allot | $101.99 million | 3.04 | $3.70 million | $0.08 | 79.88 |
| Arbe Robotics | $1.03 million | 72.39 | -$45.17 million | ($0.41) | -1.67 |
Allot has higher revenue and earnings than Arbe Robotics. Arbe Robotics is trading at a lower price-to-earnings ratio than Allot, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for Allot and Arbe Robotics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allot | 1 | 1 | 5 | 0 | 2.57 |
| Arbe Robotics | 1 | 0 | 3 | 0 | 2.50 |
Allot presently has a consensus price target of $13.13, suggesting a potential upside of 105.40%. Arbe Robotics has a consensus price target of $2.25, suggesting a potential upside of 229.48%. Given Arbe Robotics’ higher possible upside, analysts clearly believe Arbe Robotics is more favorable than Allot.
Insider & Institutional Ownership
51.5% of Allot shares are owned by institutional investors. Comparatively, 33.4% of Arbe Robotics shares are owned by institutional investors. 3.4% of Allot shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Allot and Arbe Robotics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allot | 3.63% | 6.35% | 3.70% |
| Arbe Robotics | -4,402.73% | -81.52% | -57.75% |
Summary
Allot beats Arbe Robotics on 12 of the 14 factors compared between the two stocks.
About Allot
Allot Communications Ltd. is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Their solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Their industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe.
About Arbe Robotics
Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
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