Head to Head Comparison: Gilat Satellite Networks (GILT) & Finisar (FNSR)

Gilat Satellite Networks (NASDAQ: GILT) and Finisar (NASDAQ:FNSR) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Risk and Volatility

Gilat Satellite Networks has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Finisar has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gilat Satellite Networks and Finisar’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gilat Satellite Networks $282.76 million 1.59 -$5.34 million $0.13 63.08
Finisar $1.45 billion 1.43 $249.34 million $1.75 10.41

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gilat Satellite Networks and Finisar, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gilat Satellite Networks 0 0 0 0 N/A
Finisar 1 4 9 1 2.67

Finisar has a consensus price target of $26.68, suggesting a potential upside of 46.42%. Given Finisar’s higher probable upside, analysts clearly believe Finisar is more favorable than Gilat Satellite Networks.

Institutional & Insider Ownership

9.3% of Gilat Satellite Networks shares are held by institutional investors. Comparatively, 88.5% of Finisar shares are held by institutional investors. 1.1% of Gilat Satellite Networks shares are held by insiders. Comparatively, 1.0% of Finisar shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Gilat Satellite Networks and Finisar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gilat Satellite Networks 2.41% 6.51% 3.63%
Finisar 14.33% 9.51% 5.83%

Summary

Finisar beats Gilat Satellite Networks on 11 of the 14 factors compared between the two stocks.

About Gilat Satellite Networks

Gilat Satellite Networks Ltd. is a provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-Move/on-the-Pause terminals and modems. The Company’s equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations and enterprises.

About Finisar

Finisar Corporation (Finisar) is a provider of optical subsystems and components that are used in data communication and telecommunication applications. The Company’s optical subsystems consist of transmitters, receivers, transceivers, transponders and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in these networks, including the switches, routers, and servers used in wireline networks. These products rely on the use of semiconductor lasers and photodetectors in conjunction with integrated circuits and optoelectronic packaging to provide a means for transmitting and receiving digital signals over fiber optic cable at speeds ranging from less than one gigabit per second (Gbps), to more than 100 Gbps, over distances of less than 10 meters to more than 2,000 kilometers, using a range of network protocols and physical configurations.

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