Belden Inc (BDC) vs Extreme Networks, Inc. (EXTR)

Belden Inc and Extreme Networks, Inc. are both Communication Equipment companies. Belden Inc is the larger, with a market value of $3.8B against $2.8B — 1.4× the size. Belden Inc trades at the lower P/E: 21.7× against 52.7×. Belden Inc grew revenue faster over the last twelve months: 17.7% against 11.3%. Belden Inc has the higher net margin (5.62% vs 3.99%) and the lower return on invested capital (4.33% vs 107.1%). Across the 22 metrics below, Belden Inc leads on 14 and Extreme Networks, Inc. on 8.

Valuation

Metric BDC EXTR Communication Equipment median
P/E 21.68 52.73 29.86
P/S 1.22 2.12 1.68
P/B 2.75 31.65 1.72
Price to free cash flow 16.00 18.11 21.71
EV/EBITDA 14.04 24.74 14.04
EV/Sales 2.07 2.10 1.76
Earnings yield 4.61% 1.90% (0.87%)
Free cash flow yield 6.25% 5.52% 0.68%

Profitability

Metric BDC EXTR Communication Equipment median
Gross margin 36.84% 61.85% 39.34%
Operating margin 8.99% 5.67% 2.43%
Net margin 5.62% 3.99% (0.64%)
Free cash flow margin 7.30% 11.77% 0.27%
Return on equity 13.37% 67.06% 0.00%
Return on assets 3.75% 4.28% (0.10%)
Return on invested capital 4.33% 107.12% 1.29%

Growth

Metric BDC EXTR Communication Equipment median
Revenue growth (TTM) 17.72% 11.29% 9.66%
EPS growth (last fiscal year) 23.13% 616.67% 31.29%
Revenue growth, 5-year CAGR 9.16% 4.92% 4.92%
Net income growth, 5-year CAGR 0.00% 85.15% 0.00%

Health

Metric BDC EXTR Communication Equipment median
Debt to equity 2.19 2.27 0.05
Current ratio 1.82 1.02 1.99
Net debt to EBITDA 2.01 (0.49) 0.93

Dividend

Metric BDC EXTR Communication Equipment median
Dividend yield 0.20% — 1.10%
Payout ratio 0.04 — 0.44

Size

Metric BDC EXTR Communication Equipment median
Market cap 3.76b 2.76b 495.24m

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