AudioCodes Ltd. (AUDC) vs NETGEAR, Inc. (NTGR)

AudioCodes Ltd. and NETGEAR, Inc. are both Communication Equipment companies. NETGEAR, Inc. is the larger, with a market value of $614.3M against $266.9M — 2.3× the size. NETGEAR, Inc. has negative trailing earnings, so its P/E is not meaningful; AudioCodes Ltd. trades at 41.2×. AudioCodes Ltd. grew revenue faster over the last twelve months: 2.47% against −0.50%. AudioCodes Ltd. has the higher net margin (2.83% vs −3.71%) and the higher return on invested capital (10.7% vs −11.2%). Across the 18 metrics below, AudioCodes Ltd. leads on 13 and NETGEAR, Inc. on 5.

Valuation

Metric AUDC NTGR Communication Equipment median
P/E 41.15 n/m 33.71
P/S 1.08 0.87 1.91
P/B 1.57 1.32 1.89
Price to free cash flow 12.48 n/m 25.13
EV/EBITDA 10.85 n/m 14.90
EV/Sales 0.84 0.48 2.03
Earnings yield 2.43% (4.17%) (0.50%)
Free cash flow yield 8.01% (2.86%) 1.18%

Profitability

Metric AUDC NTGR Communication Equipment median
Gross margin 65.74% 40.03% 40.03%
Operating margin 5.76% (4.87%) 2.43%
Net margin 2.83% (3.71%) (0.64%)
Free cash flow margin 8.66% (2.48%) 0.95%
Return on equity 0.00% (5.26%) (1.27%)
Return on assets 2.18% (3.23%) (0.10%)
Return on invested capital 10.67% (11.22%) 1.29%

Growth

Metric AUDC NTGR Communication Equipment median
Revenue growth (TTM) 2.47% (0.50%) 9.66%
EPS growth (last fiscal year) (38.00%) (250.00%) 31.29%
Revenue growth, 5-year CAGR 2.15% (11.03%) 4.92%
Net income growth, 5-year CAGR (19.95%) 0.00% 0.00%

Health

Metric AUDC NTGR Communication Equipment median
Debt to equity 0.00 0.00 0.05
Current ratio 1.90 2.48 1.99
Net debt to EBITDA (3.90) 12.06 0.93

Dividend

Metric AUDC NTGR Communication Equipment median
Dividend yield 3.74% — 1.06%
Payout ratio 1.54 — 0.44

Size

Metric AUDC NTGR Communication Equipment median
Market cap 266.92m 614.25m 565.68m

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