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

AudioCodes Ltd. and Aviat Networks, Inc. are both Communication Equipment companies. AudioCodes Ltd. and Aviat Networks, Inc. are of similar size ($256.5M and $252.3M). AudioCodes Ltd. trades at the lower P/E: 41.0× against 106×. 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 14 and Aviat Networks, Inc. on 8.

Valuation

Metric AUDC AVNW Communication Equipment median
P/E 41.00 105.74 33.61
P/S 1.08 0.59 2.16
P/B 1.57 0.97 2.40
Price to free cash flow 12.44 42.38 25.02
EV/EBITDA 12.66 11.13 13.78
EV/Sales 0.98 0.64 2.27
Earnings yield 2.44% 0.95% (0.65%)
Free cash flow yield 8.04% 2.36% 1.61%

Profitability

Metric AUDC AVNW Communication Equipment median
Gross margin 65.74% 31.45% 39.47%
Operating margin 5.76% 4.38% 2.39%
Net margin 2.83% 0.58% (0.74%)
Free cash flow margin 8.66% 1.39% 1.39%
Return on equity 0.00% 0.96% (1.91%)
Return on assets 2.18% 0.41% (0.20%)
Return on invested capital 10.67% 4.12% 0.72%

Growth

Metric AUDC AVNW Communication Equipment median
Revenue growth (TTM) 2.47% 1.17% 11.48%
EPS growth (last fiscal year) (38.00%) 90.00% —
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 0.06
Current ratio 1.90 1.97 2.01
Net debt to EBITDA (3.90) 0.95 0.67

Dividend

Metric AUDC AVNW Communication Equipment median
Dividend yield 2.63% — 2.63%
Payout ratio 0.84 0.00 0.00

Size

Metric AUDC AVNW Communication Equipment median
Market cap 252.31m 256.53m 563.45m

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