Analyzing KVH Industries (KVHI) & Iteris (NYSE:ITI)

Iteris (NYSE: ITI) and KVH Industries (NASDAQ:KVHI) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitabiliy, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

64.5% of KVH Industries shares are owned by institutional investors. 11.1% of KVH Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Iteris and KVH Industries’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Iteris	$95.98 million	2.30	-$1.72 million	N/A	N/A
KVH Industries	$170.44 million	1.11	$8.18 million	($0.67)	-16.64

KVH Industries has higher revenue and earnings than Iteris.

Analyst Ratings

This is a summary of current ratings and recommmendations for Iteris and KVH Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iteris	0	0	3	0	3.00
KVH Industries	0	0	2	0	3.00

Iteris presently has a consensus price target of $8.33, indicating a potential upside of 22.55%. KVH Industries has a consensus price target of $9.50, indicating a potential downside of 14.80%. Given Iteris’ higher possible upside, equities analysts clearly believe Iteris is more favorable than KVH Industries.

Profitability

This table compares Iteris and KVH Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iteris	-13.64%	-33.30%	-22.30%
KVH Industries	-6.35%	1.84%	0.98%

Summary

KVH Industries beats Iteris on 7 of the 10 factors compared between the two stocks.

About Iteris

Iteris, Inc. is a provider of information solutions for both the traffic management and global agribusiness markets. The Company operates through three segments: Roadway Sensors, Transportation Systems and Performance Analytics. The Roadway Sensors segment provides various vehicle detection and information systems and products for traffic intersection control, incident detection and roadway traffic data collection applications. The Transportation Systems segment includes transportation engineering and consulting services, and the development of transportation management and traveler information systems for the Intelligent Transportation Systems (ITS) industry. The Performance Analytics segment includes iPeMS, its specialized transportation performance measurement and traffic analytics solutions, as well as ClearPath Weather, its road-maintenance applications, and ClearAg, its precision agriculture solutions.

About KVH Industries

KVH Industries, Inc. is a manufacturer of solutions that provide high-speed Internet, television and voice services through satellite to mobile users at sea and on land. The Company also provides commercially licensed entertainment, including news, sports, music and movies, to commercial and leisure customers in the maritime, hotel and retail markets. It operates in two geographic segments, in the mobile communications, navigation and guidance and stabilization equipment industry. The Company develops and distributes training films and e-learning computer-based training courses to commercial maritime customers. It is also a manufacturer of navigational sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. It designs, develops, manufactures and markets mobile communications products and services for the marine and land mobile markets, and navigation, guidance and stabilization products for both the commercial and defense markets.