Frequency Electronics, Inc. (FEIM) vs Harmonic Inc. (HLIT)

Frequency Electronics, Inc. and Harmonic Inc. are both Communication Equipment companies. Harmonic Inc. is the larger, with a market value of $1.2B against $953.0M — 1.3× the size. Harmonic Inc. has negative trailing earnings, so its P/E is not meaningful; Frequency Electronics, Inc. trades at 351×. Harmonic Inc. grew revenue faster over the last twelve months: 11.2% against 6.30%. Frequency Electronics, Inc. has the higher net margin (3.68% vs −10.6%) and the lower return on invested capital (1.96% vs 13.6%). Across the 19 metrics below, Harmonic Inc. leads on 10 and Frequency Electronics, Inc. on 9.

Valuation

Metric FEIM HLIT Communication Equipment median
P/E 350.91 n/m 33.61
P/S 12.42 2.70 2.16
P/B 7.55 3.32 2.40
Price to free cash flow n/m 22.19 25.02
EV/EBITDA 463.38 8.94 13.78
EV/Sales 11.67 2.42 2.27
Earnings yield 0.28% (3.81%) (0.65%)
Free cash flow yield (0.02%) 4.51% 1.61%

Profitability

Metric FEIM HLIT Communication Equipment median
Gross margin 33.03% 50.01% 39.47%
Operating margin 2.52% 11.69% 2.39%
Net margin 3.68% (10.62%) (0.74%)
Free cash flow margin (0.25%) 12.14% 1.39%
Return on equity 3.04% (11.69%) (1.91%)
Return on assets 2.17% (6.66%) (0.20%)
Return on invested capital 1.96% 13.56% 0.72%

Growth

Metric FEIM HLIT Communication Equipment median
Revenue growth (TTM) 6.30% 11.19% 11.48%
EPS growth (last fiscal year) (103.63%) (215.15%) —
Revenue growth, 5-year CAGR 3.11% (0.99%) 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric FEIM HLIT Communication Equipment median
Debt to equity 0.00 0.31 0.06
Current ratio 5.34 3.05 2.01
Net debt to EBITDA (0.92) (0.15) 0.67

Dividend

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

Size

Metric FEIM HLIT Communication Equipment median
Market cap 953.04m 1.21b 563.45m

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