AudioCodes Ltd. (AUDC) vs Optical Cable Corporation (OCC)

AudioCodes Ltd. and Optical Cable Corporation are both Communication Equipment companies. AudioCodes Ltd. is the larger, with a market value of $186.7M against $79.2M — 2.4× the size. AudioCodes Ltd. trades at the lower P/E: 29.2× against 30.5×. Optical Cable Corporation grew revenue faster over the last twelve months: 13.9% against 2.47%. Optical Cable Corporation has the higher net margin (3.10% vs 2.83%) and the higher return on invested capital (12.7% vs 10.7%). Across the 22 metrics below, AudioCodes Ltd. leads on 13 and Optical Cable Corporation on 9.

Valuation

Metric AUDC OCC Communication Equipment median
P/E 29.23 30.48 29.86
P/S 0.77 0.94 1.68
P/B 1.12 5.30 1.72
Price to free cash flow 8.87 190.53 21.71
EV/EBITDA 6.78 18.89 14.04
EV/Sales 0.52 0.97 1.76
Earnings yield 3.42% 3.28% (0.87%)
Free cash flow yield 11.28% 0.52% 0.68%

Profitability

Metric AUDC OCC Communication Equipment median
Gross margin 65.74% 34.28% 39.34%
Operating margin 5.76% 4.20% 2.43%
Net margin 2.83% 3.10% (0.64%)
Free cash flow margin 8.66% 0.50% 0.27%
Return on equity 0.00% 15.56% 0.00%
Return on assets 2.18% 6.03% (0.10%)
Return on invested capital 10.67% 12.73% 1.29%

Growth

Metric AUDC OCC Communication Equipment median
Revenue growth (TTM) 2.47% 13.86% 9.66%
EPS growth (last fiscal year) (38.00%) 66.67% 31.29%
Revenue growth, 5-year CAGR 2.15% 5.73% 4.92%
Net income growth, 5-year CAGR (19.95%) 0.00% 0.00%

Health

Metric AUDC OCC Communication Equipment median
Debt to equity 0.00 0.18 0.05
Current ratio 1.90 2.17 1.99
Net debt to EBITDA (3.90) 6.59 0.93

Dividend

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

Size

Metric AUDC OCC Communication Equipment median
Market cap 186.66m 79.22m 495.24m

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