ADTRAN Holdings, Inc. (ADTN) vs NETGEAR, Inc. (NTGR)

ADTRAN Holdings, Inc. and NETGEAR, Inc. are both Communication Equipment companies. ADTRAN Holdings, Inc. and NETGEAR, Inc. are of similar size ($601.2M and $563.5M). ADTRAN Holdings, Inc. grew revenue faster over the last twelve months: 15.8% against −0.50%. ADTRAN Holdings, Inc. has the higher net margin (−2.29% vs −3.71%) and the higher return on invested capital (−0.55% vs −11.2%). Across the 18 metrics below, ADTRAN Holdings, Inc. leads on 12 and NETGEAR, Inc. on 6.

Valuation

Metric ADTN NTGR Communication Equipment median
P/E n/m n/m 33.61
P/S 0.51 0.86 2.16
P/B 4.46 1.31 2.40
Price to free cash flow 25.02 n/m 25.02
EV/EBITDA 6.98 n/m 13.78
EV/Sales 0.61 0.47 2.27
Earnings yield (3.92%) (4.21%) (0.65%)
Free cash flow yield 4.00% (2.89%) 1.61%

Profitability

Metric ADTN NTGR Communication Equipment median
Gross margin 38.46% 40.03% 39.47%
Operating margin (0.18%) (4.87%) 2.39%
Net margin (2.29%) (3.71%) (0.74%)
Free cash flow margin 2.03% (2.48%) 1.39%
Return on equity (17.44%) (5.26%) (1.91%)
Return on assets (2.20%) (3.23%) (0.20%)
Return on invested capital (0.55%) (11.22%) 0.72%

Growth

Metric ADTN NTGR Communication Equipment median
Revenue growth (TTM) 15.75% (0.50%) 11.48%
EPS growth (last fiscal year) 90.83% (250.00%) —
Revenue growth, 5-year CAGR 16.43% (11.03%) 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ADTN NTGR Communication Equipment median
Debt to equity 1.69 0.00 0.06
Current ratio 1.79 2.48 2.01
Net debt to EBITDA 1.11 12.06 0.67

Dividend

Metric ADTN NTGR Communication Equipment median
Dividend yield 2.81% — 2.63%
Payout ratio 9.00 0.00 0.00

Size

Metric ADTN NTGR Communication Equipment median
Market cap 563.45m 601.20m 563.45m

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