ADTRAN Holdings, Inc. (ADTN) vs Gilat Satellite Networks Ltd. (GILT)

ADTRAN Holdings, Inc. and Gilat Satellite Networks Ltd. are both Communication Equipment companies. Gilat Satellite Networks Ltd. is the larger, with a market value of $771.8M against $563.5M — 1.4× the size. ADTRAN Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Gilat Satellite Networks Ltd. trades at 22.0×. Gilat Satellite Networks Ltd. grew revenue faster over the last twelve months: 39.5% against 15.8%. Gilat Satellite Networks Ltd. has the higher net margin (6.21% vs −2.29%) and the higher return on invested capital (4.77% vs −0.55%). Both pay a dividend; Gilat Satellite Networks Ltd. yields more (11.6% vs 2.81%). Across the 21 metrics below, Gilat Satellite Networks Ltd. leads on 13 and ADTRAN Holdings, Inc. on 8.

Valuation

Metric ADTN GILT Communication Equipment median
P/E n/m 22.04 33.61
P/S 0.51 1.60 2.16
P/B 4.46 1.43 2.40
Price to free cash flow 25.02 n/m 25.02
EV/EBITDA 6.98 12.64 13.78
EV/Sales 0.61 1.39 2.27
Earnings yield (3.92%) 4.54% (0.65%)
Free cash flow yield 4.00% (0.43%) 1.61%

Profitability

Metric ADTN GILT Communication Equipment median
Gross margin 38.46% 30.33% 39.47%
Operating margin (0.18%) 6.06% 2.39%
Net margin (2.29%) 6.21% (0.74%)
Free cash flow margin 2.03% (0.69%) 1.39%
Return on equity (17.44%) 7.04% (1.91%)
Return on assets (2.20%) 4.53% (0.20%)
Return on invested capital (0.55%) 4.77% 0.72%

Growth

Metric ADTN GILT Communication Equipment median
Revenue growth (TTM) 15.75% 39.47% 11.48%
EPS growth (last fiscal year) 90.83% (22.73%) —
Revenue growth, 5-year CAGR 16.43% 22.14% 4.92%
Net income growth, 5-year CAGR 0.00% (9.99%) 0.00%

Health

Metric ADTN GILT Communication Equipment median
Debt to equity 1.69 0.00 0.06
Current ratio 1.79 1.97 2.01
Net debt to EBITDA 1.11 (3.90) 0.67

Dividend

Metric ADTN GILT Communication Equipment median
Dividend yield 2.81% 11.57% 2.63%
Payout ratio 9.00 0.00 0.00

Size

Metric ADTN GILT Communication Equipment median
Market cap 563.45m 771.84m 563.45m

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