Harmonic Inc. (HLIT) vs NETGEAR, Inc. (NTGR)

Harmonic Inc. and NETGEAR, Inc. are both Communication Equipment companies. Harmonic Inc. is the larger, with a market value of $1.0B against $517.2M — 2.0× the size. NETGEAR, Inc. grew revenue faster over the last twelve months: −3.20% against −16.0%. NETGEAR, Inc. has the higher net margin (−4.91% vs −7.81%) and the lower return on invested capital (−12.9% vs 15.9%). Across the 18 metrics below, NETGEAR, Inc. leads on 11 and Harmonic Inc. on 7.

Valuation

Metric HLIT NTGR Communication Equipment median
P/E n/m n/m 29.86
P/S 2.27 0.76 1.68
P/B 2.72 1.18 1.72
Price to free cash flow n/m n/m 21.71
EV/EBITDA 7.61 n/m 14.04
EV/Sales 2.03 0.41 1.76
Earnings yield (3.26%) (6.33%) (0.87%)
Free cash flow yield (2.42%) (1.04%) 0.68%

Profitability

Metric HLIT NTGR Communication Equipment median
Gross margin 49.29% 40.29% 39.34%
Operating margin 15.15% (5.98%) 2.43%
Net margin (7.81%) (4.91%) (0.64%)
Free cash flow margin (5.50%) (0.79%) 0.27%
Return on equity (8.60%) (7.03%) 0.00%
Return on assets (5.22%) (4.25%) (0.10%)
Return on invested capital 15.85% (12.88%) 1.29%

Growth

Metric HLIT NTGR Communication Equipment median
Revenue growth (TTM) (16.04%) (3.20%) 9.66%
EPS growth (last fiscal year) (215.15%) (250.00%) 31.29%
Revenue growth, 5-year CAGR (0.99%) (11.03%) 4.92%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HLIT NTGR Communication Equipment median
Debt to equity 0.10 0.00 0.05
Current ratio 2.43 2.48 1.99
Net debt to EBITDA (0.15) 12.06 0.93

Dividend

Metric HLIT NTGR Communication Equipment median
Dividend yield — — 1.10%
Payout ratio — — 0.44

Size

Metric HLIT NTGR Communication Equipment median
Market cap 1.01b 517.22m 495.24m

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