Gilat Satellite Networks Ltd. (GILT) vs Harmonic Inc. (HLIT)

Gilat Satellite Networks Ltd. and Harmonic Inc. are both Communication Equipment companies. Harmonic Inc. is the larger, with a market value of $1.2B against $771.8M — 1.6× the size. Harmonic Inc. has negative trailing earnings, so its P/E is not meaningful; Gilat Satellite Networks Ltd. trades at 22.0×. Gilat Satellite Networks Ltd. grew revenue faster over the last twelve months: 39.5% against 11.2%. Gilat Satellite Networks Ltd. has the higher net margin (6.21% vs −10.6%) and the lower return on invested capital (4.77% vs 13.6%). Across the 20 metrics below, Gilat Satellite Networks Ltd. leads on 12 and Harmonic Inc. on 8.

Valuation

Metric GILT HLIT Communication Equipment median
P/E 22.04 n/m 33.61
P/S 1.60 2.70 2.16
P/B 1.43 3.32 2.40
Price to free cash flow n/m 22.19 25.02
EV/EBITDA 12.64 8.94 13.78
EV/Sales 1.39 2.42 2.27
Earnings yield 4.54% (3.81%) (0.65%)
Free cash flow yield (0.43%) 4.51% 1.61%

Profitability

Metric GILT HLIT Communication Equipment median
Gross margin 30.33% 50.01% 39.47%
Operating margin 6.06% 11.69% 2.39%
Net margin 6.21% (10.62%) (0.74%)
Free cash flow margin (0.69%) 12.14% 1.39%
Return on equity 7.04% (11.69%) (1.91%)
Return on assets 4.53% (6.66%) (0.20%)
Return on invested capital 4.77% 13.56% 0.72%

Growth

Metric GILT HLIT Communication Equipment median
Revenue growth (TTM) 39.47% 11.19% 11.48%
EPS growth (last fiscal year) (22.73%) (215.15%) —
Revenue growth, 5-year CAGR 22.14% (0.99%) 4.92%
Net income growth, 5-year CAGR (9.99%) 0.00% 0.00%

Health

Metric GILT HLIT Communication Equipment median
Debt to equity 0.00 0.31 0.06
Current ratio 1.97 3.05 2.01
Net debt to EBITDA (3.90) (0.15) 0.67

Dividend

Metric GILT HLIT Communication Equipment median
Dividend yield 11.57% — 2.63%
Payout ratio 0.00 0.00 0.00

Size

Metric GILT HLIT Communication Equipment median
Market cap 771.84m 1.21b 563.45m

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