Critical Analysis: Actelis Networks (NASDAQ:ASNS) versus COMSovereign (NASDAQ:COMS)

COMSovereign (NASDAQ:COMS) and Actelis Networks (NASDAQ:ASNS) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Risk & Volatility

COMSovereign has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Actelis Networks has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.

Institutional & Insider Ownership

6.9% of COMSovereign shares are owned by institutional investors. Comparatively, 12.4% of Actelis Networks shares are owned by institutional investors. 1.7% of COMSovereign shares are owned by insiders. Comparatively, 5.5% of Actelis Networks shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares COMSovereign and Actelis Networks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
COMSovereign	$9.88 million	0.00	-$79.71 million	N/A	N/A
Actelis Networks	$7.72 million	0.93	-$6.29 million	($1.25)	-0.92

Actelis Networks has lower revenue, but higher earnings than COMSovereign.

Analyst Ratings

This is a summary of current ratings for COMSovereign and Actelis Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
COMSovereign	0	0	1	0	3.00
Actelis Networks	0	0	1	0	3.00

COMSovereign currently has a consensus price target of $3.00, indicating a potential upside of 130,334.78%. Actelis Networks has a consensus price target of $5.00, indicating a potential upside of 334.78%. Given COMSovereign’s higher probable upside, research analysts plainly believe COMSovereign is more favorable than Actelis Networks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
COMSovereign	N/A	N/A	N/A
Actelis Networks	-56.82%	-752.62%	-45.14%

About COMSovereign

COMSovereign Holding Corp. provides various solutions for network operators, mobile device carriers, governmental units, and other enterprises worldwide. The company offers packet microwave solutions that transmit broadband voice, video, and data, as well as enable service providers, government agencies, enterprises, and other organizations; harmony enhanced MC; fastback intelligent backhaul radio (IBR); and in-band full-duplex technology. It also provides tethered drones and aerostats for use in intelligence, surveillance, reconnaissance, and tactical communication, as well as communication platform for national defense and security customers; and edge compute capable 4G LTE and 5G network radio. In addition, the company offers repairs, support and maintenance, drones, consulting, and warranties as well as other services. The company was formerly known as Drone Aviation Holding Corp. and changed its name to COMSovereign Holding Corp. in November 2019. COMSovereign Holding Corp. was incorporated in 2014 and is based in Tucson, Arizona.

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.