Identiv (NASDAQ:INVE) versus AstroNova (ALOT) Critical Review

Identiv (NASDAQ:INVE) and AstroNova (NASDAQ:ALOT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Volatility and Risk

Identiv has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, AstroNova has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.

Earnings and Valuation

This table compares Identiv and AstroNova’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Identiv $60.22 million 1.40 -$8.13 million ($0.38) -14.37
AstroNova $113.40 million 1.20 $3.28 million $0.63 31.19

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

Profitability

This table compares Identiv and AstroNova’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Identiv -13.43% -21.62% -9.79%
AstroNova 3.20% 8.08% 4.41%

Insider & Institutional Ownership

31.7% of Identiv shares are owned by institutional investors. Comparatively, 56.8% of AstroNova shares are owned by institutional investors. 10.5% of Identiv shares are owned by company insiders. Comparatively, 10.4% of AstroNova shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Identiv and AstroNova, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Identiv 0 0 4 0 3.00
AstroNova 0 0 1 0 3.00

Identiv presently has a consensus target price of $8.75, indicating a potential upside of 60.26%. Given Identiv’s higher possible upside, analysts plainly believe Identiv is more favorable than AstroNova.

Dividends

AstroNova pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Identiv does not pay a dividend. AstroNova pays out 44.4% of its earnings in the form of a dividend.

Summary

AstroNova beats Identiv on 9 of the 15 factors compared between the two stocks.

About Identiv

Identiv, Inc. operates as a security technology company that secures and manages access to physical places, things, and information primarily in the Americas, Europe, the Middle-East, and the Asia-Pacific. Its Premises segment offers modular Hirsch MX controllers that allow customers to start with a small system and expand over time; Hirsch Velocity software platform for centralized management of access and security operations across an organization; federal identity, credential and acess management architecture, an access control system; TouchSecure door readers that provide various features to support security standards; and global services to support system design, deployment, and managed services across customers premises security lifecycle. Its Identity segment provides smart card readers, which include various contact, contactless, portable, and mobile smart card readers, as well as tokens and terminals to enable logical access, and security and identification applications, such as national ID, payment, e-health, and e-government. Its Credentials segment provides NFC and radio frequency identification products, including inlays and inlay-based, and other cards; and labels, tags, and stickers, as well as other radio frequency and integrated circuits components for use in various applications, such as virtual reality, games, loyalty cards, mobile payment systems, transit and event ticketing, and brand authenticity from pharmaceuticals to consumer goods, hospital resource management, cold-chain management, and others. Its All Other segment provides chip drives and digital media readers. Identiv, Inc. markets and sells its products through original equipment manufacturers, dealers, systems integrators, value added resellers, resellers, and Internet, as well as directly to end users. The company was formerly known as Identive Group, Inc. and changed its name to Identiv, Inc. in May 2014. Identiv, Inc. was founded in 1990 and is headquartered in Fremont, California.

About AstroNova

AstroNova, Inc. designs, develops, manufactures, and distributes specialty printers, and data acquisition and analysis systems in the United States, Canada, Asia, Europe, Central and South America, and internationally. The company operates through two segments, Product Identification and Test & Measurement (T&M). The Product Identification segment offers tabletop and work cell-ready digital color label printers; specialty OEM printing systems; and labels, tags, inks, toner, and thermal transfer ribbons under the QuickLabel brand. This segment also offers T2-C, an inkjet table top label press; T2, a parent of the T2-C; T4 for print, die cut, and lamination; and T3, a customizable label production and finishing press under the TrojanLabel brand. In addition, this segment sells various specialized software used to operate the printers and presses, design labels, and manage printing on an automated basis. It serves chemicals, cosmetics, food and beverage, medical products, pharmaceuticals, and other industries, as well as brand owners, label converters, commercial printers, and packaging manufacturers. The T&M segment offers visual data from local and networked data streams and sensors; a range of hardware and software products under the AstroNova T&M brand; Daxus portable data acquisition systems; TMX high-speed data acquisition systems; DDX100 SmartCorder portable data acquisition systems; EV-500, a digital strip chart recording system; PTA-45B cockpit printers; and ToughWriter, Miltope, and RITEC branded airborne printers. Its AstroNova airborne printers are used in flight decks, as well as military, commercial, and business aircraft cabins; and ToughSwitch Ethernet switches used in military aircraft and vehicles. The company was formerly known as Astro-Med, Inc. and changed its name to AstroNova, Inc. in May 2016. The company was founded in 1969 and is headquartered in West Warwick, Rhode Island.

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