RadiSys (NASDAQ: RSYS) and ForeScout Technologies (NASDAQ:FSCT) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
This table compares RadiSys and ForeScout Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for RadiSys and ForeScout Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RadiSys presently has a consensus price target of $3.60, indicating a potential upside of 383.87%. ForeScout Technologies has a consensus price target of $34.00, indicating a potential upside of 9.36%. Given RadiSys’ stronger consensus rating and higher possible upside, equities analysts clearly believe RadiSys is more favorable than ForeScout Technologies.
Insider & Institutional Ownership
38.4% of RadiSys shares are owned by institutional investors. Comparatively, 35.7% of ForeScout Technologies shares are owned by institutional investors. 6.1% of RadiSys shares are owned by company insiders. Comparatively, 36.2% of ForeScout Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares RadiSys and ForeScout Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RadiSys||$133.77 million||0.22||-$52.60 million||($0.55)||-1.35|
|ForeScout Technologies||$220.87 million||5.54||-$91.20 million||($7.93)||-3.92|
RadiSys has higher earnings, but lower revenue than ForeScout Technologies. ForeScout Technologies is trading at a lower price-to-earnings ratio than RadiSys, indicating that it is currently the more affordable of the two stocks.
ForeScout Technologies beats RadiSys on 7 of the 13 factors compared between the two stocks.
Radisys Corporation provides telecom solutions worldwide. It operates in two segments, Software-Systems and Hardware Solutions. The company's products include MediaEngine products that provide media processing capabilities required for applications, such as voice over long-term evolution (VoLTE), voice over Wi-Fi, Web real-time communication, and multimedia conferencing, as well as media interworking; and MobilityEngine, Its MobilityEngine products portfolio provide solutions for 4G, LTE-Advance and emerging 5G standards for RAN use cases, including Centralized, Virtualized and multi access edge compute (MEC). It also offers FlowEngine, which comprises data plane traffic distribution products that classify and distribute session data flows to network processing resources. In addition, the company develops telecommunications products and applications; and DCEngine products include open-based rack-scale systems that provide transformation to cloud based compute, storage, networking fabrics, and open source hardware and software. Further, it offers legacy embedded products, including ATCA, computer-on-module express, and rack mount servers that enable the control and movement of data in 3G and LTE telecom networks and provide the hardware enablement for network elements applications; enable image processing capabilities for healthcare markets; and enable energy-efficient computing capabilities for industrial deployments. The company sells its products through direct sales, distributors, sales representatives, and system integrators in North America, Europe, the Middle East, Africa, and the Asia Pacific. Radisys Corporation was founded in 1987 and is headquartered in Hillsboro, Oregon.
About ForeScout Technologies
ForeScout Technologies, Inc. provides network security products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers ForeScout CounterACT agentless technology that discovers, classifies, and assesses IP-based devices; ForeScout extended modules, which represent integrations across vulnerability assessment, advanced threat detection, security incidence and event management, enterprise mobility management, endpoint protection and endpoint detection and response, next generation firewall, privileged access management, and IT systems management vendors, as well as compliance; and ForeScout CounterACT Enterprise Manager, a centralized security management solution for the control of various appliances deployed on an end-customer network, as well as maintenance and professional services. The company's products are used to protect organizations against the threats that exploit the billions of Internet of things devices connected to organizations' networks. ForeScout Technologies, Inc. sells its products and services through distributors and resellers. The company was founded in 2000 and is headquartered in San Jose, California.
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