ADTRAN Holdings, Inc. (ADTN) vs Frequency Electronics, Inc. (FEIM)

ADTRAN Holdings, Inc. and Frequency Electronics, Inc. are both Communication Equipment companies. Frequency Electronics, Inc. is the larger, with a market value of $953.0M against $563.5M — 1.7× the size. ADTRAN Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Frequency Electronics, Inc. trades at 351×. ADTRAN Holdings, Inc. grew revenue faster over the last twelve months: 15.8% against 6.30%. Frequency Electronics, Inc. has the higher net margin (3.68% vs −2.29%) and the higher return on invested capital (1.96% vs −0.55%). Both pay a dividend; ADTRAN Holdings, Inc. yields more (2.81% vs 0.90%). Across the 20 metrics below, ADTRAN Holdings, Inc. leads on 11 and Frequency Electronics, Inc. on 9.

Valuation

Metric ADTN FEIM Communication Equipment median
P/E n/m 350.91 33.61
P/S 0.51 12.42 2.16
P/B 4.46 7.55 2.40
Price to free cash flow 25.02 n/m 25.02
EV/EBITDA 6.98 463.38 13.78
EV/Sales 0.61 11.67 2.27
Earnings yield (3.92%) 0.28% (0.65%)
Free cash flow yield 4.00% (0.02%) 1.61%

Profitability

Metric ADTN FEIM Communication Equipment median
Gross margin 38.46% 33.03% 39.47%
Operating margin (0.18%) 2.52% 2.39%
Net margin (2.29%) 3.68% (0.74%)
Free cash flow margin 2.03% (0.25%) 1.39%
Return on equity (17.44%) 3.04% (1.91%)
Return on assets (2.20%) 2.17% (0.20%)
Return on invested capital (0.55%) 1.96% 0.72%

Growth

Metric ADTN FEIM Communication Equipment median
Revenue growth (TTM) 15.75% 6.30% 11.48%
EPS growth (last fiscal year) 90.83% (103.63%) —
Revenue growth, 5-year CAGR 16.43% 3.11% 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ADTN FEIM Communication Equipment median
Debt to equity 1.69 0.00 0.06
Current ratio 1.79 5.34 2.01
Net debt to EBITDA 1.11 (0.92) 0.67

Dividend

Metric ADTN FEIM Communication Equipment median
Dividend yield 2.81% 0.90% 2.63%
Payout ratio 9.00 0.00 0.00

Size

Metric ADTN FEIM Communication Equipment median
Market cap 563.45m 953.04m 563.45m

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