AudioCodes Ltd. (AUDC) vs Ceragon Networks Ltd. (CRNT)

AudioCodes Ltd. and Ceragon Networks Ltd. are both Communication Equipment companies. AudioCodes Ltd. and Ceragon Networks Ltd. are of similar size ($191.8M and $186.7M). Ceragon Networks Ltd. has negative trailing earnings, so its P/E is not meaningful; AudioCodes Ltd. trades at 29.2×. AudioCodes Ltd. grew revenue faster over the last twelve months: 2.47% against −8.88%. AudioCodes Ltd. has the higher net margin (2.83% vs −0.95%) and the higher return on invested capital (10.7% vs 3.53%). Across the 21 metrics below, AudioCodes Ltd. leads on 17 and Ceragon Networks Ltd. on 4.

Valuation

Metric AUDC CRNT Communication Equipment median
P/E 29.23 n/m 29.86
P/S 0.77 0.56 1.68
P/B 1.12 1.12 1.72
Price to free cash flow 8.87 16.17 21.71
EV/EBITDA 6.78 7.59 14.04
EV/Sales 0.52 0.50 1.76
Earnings yield 3.42% (1.55%) (0.87%)
Free cash flow yield 11.28% 6.18% 0.68%

Profitability

Metric AUDC CRNT Communication Equipment median
Gross margin 65.74% 33.69% 39.34%
Operating margin 5.76% 2.43% 2.43%
Net margin 2.83% (0.95%) (0.64%)
Free cash flow margin 8.66% 5.19% 0.27%
Return on equity 0.00% (1.91%) 0.00%
Return on assets 2.18% (1.02%) (0.10%)
Return on invested capital 10.67% 3.53% 1.29%

Growth

Metric AUDC CRNT Communication Equipment median
Revenue growth (TTM) 2.47% (8.88%) 9.66%
EPS growth (last fiscal year) (38.00%) (107.41%) 31.29%
Revenue growth, 5-year CAGR 2.15% 5.20% 4.92%
Net income growth, 5-year CAGR (19.95%) 0.00% 0.00%

Health

Metric AUDC CRNT Communication Equipment median
Debt to equity 0.00 0.07 0.05
Current ratio 1.90 1.85 1.99
Net debt to EBITDA (3.90) (0.90) 0.93

Dividend

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

Size

Metric AUDC CRNT Communication Equipment median
Market cap 186.66m 191.79m 495.24m

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