Head-To-Head Review: Knowles (NYSE:KN) versus Actelis Networks (NASDAQ:ASNS)

Knowles (NYSE:KN) and Actelis Networks (NASDAQ:ASNS) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Knowles and Actelis Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knowles	4.40%	8.22%	5.57%
Actelis Networks	-53.20%	-181.28%	-50.88%

Volatility & Risk

Knowles has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Actelis Networks has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Knowles and Actelis Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knowles	0	1	2	0	2.67
Actelis Networks	0	0	1	0	3.00

Knowles currently has a consensus price target of $21.00, suggesting a potential upside of 7.60%. Actelis Networks has a consensus price target of $5.00, suggesting a potential upside of 800.41%. Given Actelis Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Actelis Networks is more favorable than Knowles.

Institutional & Insider Ownership

96.4% of Knowles shares are held by institutional investors. Comparatively, 12.4% of Actelis Networks shares are held by institutional investors. 2.5% of Knowles shares are held by company insiders. Comparatively, 2.9% of Actelis Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Knowles and Actelis Networks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knowles	$553.50 million	3.03	-$237.80 million	$0.29	67.30
Actelis Networks	$7.76 million	0.66	-$4.37 million	($0.56)	-0.99

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

Summary

Knowles beats Actelis Networks on 9 of the 14 factors compared between the two stocks.

About Knowles

Knowles Corporation offers capacitors, radio frequency (RF) filtering products, balanced armature speakers, micro-acoustic microphones, and audio solutions in Asia, the United States, Europe, other Americas, and internationally. It operates through three segments: Precision Devices (PD); Medtech & Specialty Audio (MSA); and Consumer MEMS Microphones (CMM). The PD segment designs and delivers film, electrolytic, and mica capacitor products for use in power supplies and medical implants; electromagnetic interference filters; and RF filtering solutions for use in satellite communications and radar systems for defense applications. The MSA segment designs and manufactures balanced armature speakers and microphones for the hearing health, audio, and True Wireless Stereo (TWS) markets. The CMM segment designs and manufactures micro-electro-mechanical systems (MEMS) microphones and audio solutions used in applications that serve the ear, mobile, TWS, Internet of Things, computing, and smartphones markets. The company serves the defense, medtech, electric vehicle, industrial, communications, and consumer electronics markets through original equipment manufacturers, their contract manufacturers, suppliers, sales representatives, and distributors. Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.

About Actelis Networks

Actelis Networks, Inc. engages in the design, development, manufacture, and marketing of cyber hardened, hybrid fiber, networking solutions for Internet of Things and telecommunication companies in North America, Europe, the Middle East, Israel, and the Asia Pacific. It provides rapid-deployment networking solutions for wide-area IoT applications, including federal, state, and local governments; intelligent traffic systems; and military, utility, rail, telecom, and campus applications. The company’s products include ethernet access devices; network aggregator switches; and Advanced MetaLIGHT/ Gigaline element management systems software, which enables remote management, monitoring, maintenance, and configuration of the installed equipment in the network. It also offers dynamic spectral software; and access broadband equipment. It serves offers its products through system integrators, distributors, contractors, resellers, and consultants. The company was incorporated in 1998 and is headquartered in Fremont, California.