AudioCodes Ltd. (AUDC) vs Aviat Networks, Inc. (AVNW)

AudioCodes Ltd. and Aviat Networks, Inc. are both Communication Equipment companies. Aviat Networks, Inc. is the larger, with a market value of $218.2M against $186.7M — 1.2× the size. AudioCodes Ltd. trades at the lower P/E: 29.2× against 89.4×. AudioCodes Ltd. grew revenue faster over the last twelve months: 2.47% against 1.17%. AudioCodes Ltd. has the higher net margin (2.83% vs 0.58%) and the higher return on invested capital (10.7% vs 4.12%). Across the 22 metrics below, AudioCodes Ltd. leads on 16 and Aviat Networks, Inc. on 6.

Valuation

Metric AUDC AVNW Communication Equipment median
P/E 29.23 89.37 29.86
P/S 0.77 0.50 1.68
P/B 1.12 0.82 1.72
Price to free cash flow 8.87 35.82 21.71
EV/EBITDA 6.78 9.56 14.04
EV/Sales 0.52 0.55 1.76
Earnings yield 3.42% 1.12% (0.87%)
Free cash flow yield 11.28% 2.79% 0.68%

Profitability

Metric AUDC AVNW Communication Equipment median
Gross margin 65.74% 31.45% 39.34%
Operating margin 5.76% 4.38% 2.43%
Net margin 2.83% 0.58% (0.64%)
Free cash flow margin 8.66% 1.39% 0.27%
Return on equity 0.00% 0.96% 0.00%
Return on assets 2.18% 0.41% (0.10%)
Return on invested capital 10.67% 4.12% 1.29%

Growth

Metric AUDC AVNW Communication Equipment median
Revenue growth (TTM) 2.47% 1.17% 9.66%
EPS growth (last fiscal year) (38.00%) 90.00% 31.29%
Revenue growth, 5-year CAGR 2.15% 9.85% 4.92%
Net income growth, 5-year CAGR (19.95%) (52.95%) 0.00%

Health

Metric AUDC AVNW Communication Equipment median
Debt to equity 0.00 0.36 0.05
Current ratio 1.90 1.97 1.99
Net debt to EBITDA (3.90) 0.95 0.93

Dividend

Metric AUDC AVNW Communication Equipment median
Dividend yield 5.26% — 1.10%
Payout ratio 1.54 — 0.44

Size

Metric AUDC AVNW Communication Equipment median
Market cap 186.66m 218.21m 495.24m

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