Vocera Communications (NYSE:VCRA) and Magal Security Systems (NASDAQ:MAGS) 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, analyst recommendations, earnings, valuation and profitability.
Risk & Volatility
Vocera Communications has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Magal Security Systems has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
18.6% of Magal Security Systems shares are owned by institutional investors. 3.2% of Vocera Communications shares are owned by insiders. Comparatively, 24.4% of Magal Security Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Vocera Communications and Magal Security Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vocera Communications||$179.63 million||5.09||-$9.67 million||($0.17)||-172.65|
|Magal Security Systems||$92.60 million||1.23||$2.95 million||N/A||N/A|
Magal Security Systems has lower revenue, but higher earnings than Vocera Communications.
This table compares Vocera Communications and Magal Security Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magal Security Systems||2.65%||3.08%||2.20%|
This is a breakdown of current ratings and recommmendations for Vocera Communications and Magal Security Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magal Security Systems||0||0||0||0||N/A|
Vocera Communications currently has a consensus price target of $38.78, suggesting a potential upside of 32.12%. Given Vocera Communications’ higher possible upside, equities research analysts plainly believe Vocera Communications is more favorable than Magal Security Systems.
Magal Security Systems beats Vocera Communications on 8 of the 12 factors compared between the two stocks.
About Vocera Communications
Vocera Communications, Inc. provides secure, integrated, and intelligent communication and workflow solutions that empowers mobile workers in healthcare, hospitality, energy, and other mission-critical mobile work environments in the United States and internationally. The company's communication solution integrated with other clinical systems, including electronic health records, nurse call systems, and patient monitoring, as well as to provide critical data, alerts, alarms, and clinical context that enable workflow. It also offers Vocera Communication and Workflow System, a software platform, which connects communication devices, such as hands-free, wearable, and voice-controlled communication Smartbadge and badges, as well as third-party mobile devices. In addition, the company offers Experience Innovation Network, a membership program, which partners with healthcare provider organizations for the development of innovations and solutions that enhance care team and patient experience, as well as clinical and operational performance. Further, it provides professional and technical support services; and classroom training, distance learning, or customized courseware for systems administrators, IT and industry-specific professionals, and end-user educators. As of December 31, 2018, Vocera Communications, Inc. provided its solutions to approximately 1,600 healthcare facilities, including large hospital systems, small and medium-sized local hospitals, and various clinics, surgery centers, and aged-care facilities. The company sells its products through direct sales force, resellers, and distributors. Vocera Communications, Inc. was founded in 2000 and is headquartered in San Jose, California.
About Magal Security Systems
Magal Security Systems Ltd. develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and video management systems, and cyber security products and systems worldwide. It operates through three segments: Perimeter Products, Turnkey Projects, and Video and Cyber Security. The company offers perimeter security products that enable customers to monitor, limit, and control access by unauthorized personnel to specific regions or areas. Its perimeter security systems include fence mounted detection systems; detection grids, gates, and fences to protect water passages, VIP residences, and other outdoor applications; buried sensors; hybrid perimeter intrusion detection and intelligent lighting systems; electrical field disturbance sensors; and microwave sensors. The company also provides integrated intelligent video management solutions for security surveillance and business intelligence applications; and cyber-security products for monitoring, securing, and the active management of wired, wireless, and fiber optic communication networks, as well as turnkey solutions. In addition, it offers RoboGuard, a platform that runs on a rail along the perimeter of protected sites; and life safety/duress alarm products to protect personnel in prisons. Further, the company provides MTC-1500I, a dual technology outdoor surveillance system; Fortis4G, a fourth generation command and control system; StarNet 2, a security management system; and Network Manager, a middleware package. Its products are used to protect national borders, military bases, power plants, airports, sea ports, postal facilities, prisons, banks, retail operations, hospitals, municipal security, sporting events, and industrial locations from terrorism, theft, and other security threats. The company sells its products through system integrators and distribution channels. Magal Security Systems Ltd. was founded in 1965 and is headquartered in Yehud, Israel.
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