Optimum Communications, Inc. (OPTU) vs Radcom Ltd. (RDCM)

Optimum Communications, Inc. and Radcom Ltd. are both Telecom Services companies. Optimum Communications, Inc. is the larger, with a market value of $396.7M against $172.4M — 2.3× the size. Optimum Communications, Inc. has negative trailing earnings, so its P/E is not meaningful; Radcom Ltd. trades at 24.1×. Radcom Ltd. grew revenue faster over the last twelve months: 1.89% against −4.36%. Radcom Ltd. has the higher net margin (10.5% vs −58.2%) and the higher return on invested capital (28.5% vs −9.40%). Across the 17 metrics below, Radcom Ltd. leads on 14 and Optimum Communications, Inc. on 3.

Valuation

Metric OPTU RDCM Telecom Services median
P/E n/m 24.09 13.27
P/S 0.05 2.58 0.95
P/B n/m 1.49 1.47
Price to free cash flow n/m 4.91 8.72
EV/EBITDA n/m 18.38 6.85
EV/Sales 3.06 0.96 1.87
Earnings yield (1,028.71%) 4.15% 1.66%
Free cash flow yield (30.75%) 20.37% 5.53%

Profitability

Metric OPTU RDCM Telecom Services median
Gross margin 69.90% 76.07% 51.26%
Operating margin (35.34%) 5.21% 7.62%
Net margin (58.15%) 10.47% 4.22%
Free cash flow margin (1.58%) 0.00% 4.73%
Return on equity 158.83% 6.39% 5.80%
Return on assets (16.32%) 5.00% 0.00%
Return on invested capital (9.40%) 28.49% 3.41%

Growth

Metric OPTU RDCM Telecom Services median
Revenue growth (TTM) (4.36%) 1.89% 3.31%
EPS growth (last fiscal year) (1,718.18%) 65.12% —
Revenue growth, 5-year CAGR (2.79%) 13.74% 1.50%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OPTU RDCM Telecom Services median
Debt to equity (4.82) 0.00 0.63
Current ratio 0.32 6.20 1.13
Net debt to EBITDA 15.57 (3.39) 1.86

Dividend

Metric OPTU RDCM Telecom Services median
Dividend yield — — 4.06%
Payout ratio 0.00 0.00 0.00

Size

Metric OPTU RDCM Telecom Services median
Market cap 396.69m 172.41m 3.06b

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