Extreme Networks, Inc. (EXTR) vs Frequency Electronics, Inc. (FEIM)

Extreme Networks, Inc. and Frequency Electronics, Inc. are both Communication Equipment companies. Extreme Networks, Inc. is the larger, with a market value of $2.9B against $953.0M — 3.0× the size. Extreme Networks, Inc. trades at the lower P/E: 67.3× against 351×. Extreme Networks, Inc. grew revenue faster over the last twelve months: 12.6% against 6.30%. Frequency Electronics, Inc. has the higher net margin (3.68% vs 3.28%) and the lower return on invested capital (1.96% vs 96.6%). Across the 21 metrics below, Extreme Networks, Inc. leads on 16 and Frequency Electronics, Inc. on 5.

Valuation

Metric EXTR FEIM Communication Equipment median
P/E 67.25 350.91 33.61
P/S 2.23 12.42 2.16
P/B 32.25 7.55 2.40
Price to free cash flow 30.31 n/m 25.02
EV/EBITDA 28.83 463.38 13.78
EV/Sales 2.19 11.67 2.27
Earnings yield 1.49% 0.28% (0.65%)
Free cash flow yield 3.30% (0.02%) 1.61%

Profitability

Metric EXTR FEIM Communication Equipment median
Gross margin 61.48% 33.03% 39.47%
Operating margin 4.88% 2.52% 2.39%
Net margin 3.28% 3.68% (0.74%)
Free cash flow margin 7.42% (0.25%) 1.39%
Return on equity 54.64% 3.04% (1.91%)
Return on assets 3.61% 2.17% (0.20%)
Return on invested capital 96.62% 1.96% 0.72%

Growth

Metric EXTR FEIM Communication Equipment median
Revenue growth (TTM) 12.59% 6.30% 11.48%
EPS growth (last fiscal year) 616.67% (103.63%) —
Revenue growth, 5-year CAGR 4.92% 3.11% 4.92%
Net income growth, 5-year CAGR 85.15% 0.00% 0.00%

Health

Metric EXTR FEIM Communication Equipment median
Debt to equity 1.85 0.00 0.06
Current ratio 0.93 5.34 2.01
Net debt to EBITDA (0.49) (0.92) 0.67

Dividend

Metric EXTR FEIM Communication Equipment median
Dividend yield — 0.90% 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric EXTR FEIM Communication Equipment median
Market cap 2.86b 953.04m 563.45m

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