AudioCodes (NASDAQ: AUDC) is one of 67 public companies in the “Communications & Networking” industry, but how does it compare to its peers? We will compare AudioCodes to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for AudioCodes and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AudioCodes 0 1 2 0 2.67
AudioCodes Competitors 472 2687 4044 194 2.54

AudioCodes presently has a consensus target price of $7.50, indicating a potential upside of 9.01%. As a group, “Communications & Networking” companies have a potential upside of 27.55%. Given AudioCodes’ peers higher possible upside, analysts plainly believe AudioCodes has less favorable growth aspects than its peers.

Institutional & Insider Ownership

22.1% of AudioCodes shares are held by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are held by institutional investors. 48.8% of AudioCodes shares are held by insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AudioCodes and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AudioCodes 11.95% 7.78% 4.47%
AudioCodes Competitors -1.68% -6.44% 0.52%

Risk & Volatility

AudioCodes has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, AudioCodes’ peers have a beta of 1.17, suggesting that their average stock price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares AudioCodes and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AudioCodes $151.06 million $10.30 million 12.74
AudioCodes Competitors $2.87 billion $625.83 million 26.52

AudioCodes’ peers have higher revenue and earnings than AudioCodes. AudioCodes is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

AudioCodes peers beat AudioCodes on 7 of the 13 factors compared.

About AudioCodes

AudioCodes Ltd. designs, develops and sells Voice over-Internet Protocol (VoIP) and converged VoIP, and data networking solutions, products and applications that facilitate Unified Communications (UC) and Contact Center (CC) services. The Company categorizes its products and services into two main business lines: network and technology. Network products consist of customer premises equipment (CPE), gateways for the enterprise and service provider (or carrier) markets and of carrier-grade-oriented low- and mid-density media gateways for service providers and Enterprise Session Border Controls (ESBCs). Complementing its media gateways and session border gateways as network products are its multi-service business routers (MSBR), Internet Protocol (IP) phones, media servers, mobile VoIP solutions and value added application products. Technology products consist of its chips and boards business products. Its products are deployed in enterprise, service provider cloud networks.

Receive News & Ratings for AudioCodes Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AudioCodes Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.