Critical Contrast: ViaSat (VSAT) and Digital Ally (DGLY)

ViaSat (NASDAQ:VSAT) and Digital Ally (NASDAQ:DGLY) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Insider & Institutional Ownership

3.4% of Digital Ally shares are held by institutional investors. 8.1% of ViaSat shares are held by insiders. Comparatively, 19.8% of Digital Ally shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares ViaSat and Digital Ally’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ViaSat -5.87% -4.95% -2.66%
Digital Ally -123.96% -3,415.79% -92.76%

Valuation and Earnings

This table compares ViaSat and Digital Ally’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ViaSat $1.59 billion 2.30 -$67.30 million ($0.86) -71.44
Digital Ally $12.77 million 2.43 -$12.25 million ($1.50) -1.98

Digital Ally has lower revenue, but higher earnings than ViaSat. ViaSat is trading at a lower price-to-earnings ratio than Digital Ally, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ViaSat has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Digital Ally has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for ViaSat and Digital Ally, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ViaSat 2 2 4 0 2.25
Digital Ally 0 1 1 0 2.50

ViaSat presently has a consensus target price of $66.86, indicating a potential upside of 8.82%. Digital Ally has a consensus target price of $4.50, indicating a potential upside of 51.52%. Given Digital Ally’s stronger consensus rating and higher possible upside, analysts plainly believe Digital Ally is more favorable than ViaSat.

Summary

Digital Ally beats ViaSat on 7 of the 13 factors compared between the two stocks.

ViaSat Company Profile

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband Internet access and voice over Internet protocol services to consumers and businesses; in-flight Internet and aviation software services to commercial airlines; and mobile broadband services comprising network management and high-speed Internet connectivity services for customers using airborne, maritime, and ground mobile satellite systems. As of March 31, 2018, this segment provided broadband Internet services to approximately 576,000 subscribers. Its Commercial Networks segment offers fixed satellite networks comprising satellite network infrastructure and ground terminals designed to access Ka-band broadband services; mobile broadband satellite communication systems; and antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas. This segment also provides design and technology services, including analysis, design, development, and specification of satellites and ground systems; ASIC and MMIC design; and network function virtualization. The company's Government Systems segment offers government satellite communication systems, including various mobile and fixed broadband modems, terminals, network access control systems, and antenna systems; cybersecurity and information assurance products and services; and tactical radio and information distribution systems to enable real-time collection and dissemination of secure real-time digital information between command centers, communications nodes, ground and maritime platforms, and airborne intelligence and defense platforms. Viasat, Inc. was founded in 1986 and is headquartered in Carlsbad, California.

Digital Ally Company Profile

Digital Ally, Inc. produces and sells digital video imaging and storage products for use in law enforcement, security, and commercial applications in the United States and internationally. Its digital audio/video recording, storage, and other products include an in-car digital audio/video recorder that is contained in a rear view mirror for law enforcement vehicles and commercial fleets; and hands-free automatic activated body-worn cameras and in-car video systems, as well as provides its law enforcement customers with audio/video surveillance from multiple vantage points. The company also provides VuLink, an in-car device that enables an in-car and body worn digital audio/video camera system to automatically and simultaneously start recording; and Digital Ally, a suite of data management Web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information. In addition, its digital audio/video recording, storage, and other products comprise a miniature body-worn digital video system; VuVault.net, a law enforcement cloud storage solution, including cloud-based fleet management and driver monitoring/training applications; and FleetVU Manager, a Web-based software for commercial fleet tracking and monitoring. The company sells its products through direct sales and third-party distributors. Digital Ally, Inc. is headquartered in Lenexa, Kansas.

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