Silicom (SILC) vs. Aviat Networks (AVNW) Critical Survey
Silicom (NASDAQ: SILC) and Aviat Networks (NASDAQ:AVNW) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
This table compares Silicom and Aviat Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Silicom has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Aviat Networks has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Earnings & Valuation
This table compares Silicom and Aviat Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silicom||$108.60 million||4.01||$21.38 million||$1.93||30.34|
|Aviat Networks||$241.87 million||0.37||$5.44 million||($0.17)||-99.94|
Silicom has higher revenue, but lower earnings than Aviat Networks. Aviat Networks is trading at a lower price-to-earnings ratio than Silicom, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
21.8% of Silicom shares are held by institutional investors. Comparatively, 50.5% of Aviat Networks shares are held by institutional investors. 25.4% of Silicom shares are held by insiders. Comparatively, 6.7% of Aviat Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Silicom pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Aviat Networks does not pay a dividend. Silicom pays out 51.8% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Silicom and Aviat Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silicom presently has a consensus target price of $67.00, indicating a potential upside of 14.41%. Given Silicom’s higher probable upside, equities analysts plainly believe Silicom is more favorable than Aviat Networks.
Silicom beats Aviat Networks on 11 of the 14 factors compared between the two stocks.
Silicom Ltd. (Silicom) is engaged in the design, manufacture, marketing and support of networking and data infrastructure solutions for a range of servers, server-based systems and communications devices. The Company’s products include server network interface cards with and without bypass (Server Adapters); Intelligent and programmable cards, with features, such as encryption, acceleration, data compression, redirection, time stamping, network capture solutions, field programmable gate array (FPGA) based ultra-low latency solutions, and/or other offload features and/or compute blades (Smart Cards), and standalone Products. The Company’s market segments for its products include network appliances; servers; data storage, including Big Data; The Cloud, virtualized data centers, with and without software-defined networking (SDN), and Internet of Things (IOT).
About Aviat Networks
Aviat Networks, Inc., together with its subsidiaries, is a supplier of microwave networking solutions. The Company’s product categories include point-to-point microwave and millimeter wave radios that are licensed (subject to local frequency regulatory requirements), lightly-licensed and license-exempt (operating in license-exempt frequencies), and element and network management software. In addition, it provides a range of professional services enabling it to deliver turnkey networks, including design, deployment, maintenance and managed services. It designs, manufactures and sells a range of wireless networking products, solutions and services to mobile and fixed public network operators, private network operators, Federal, State and Local government agencies, transportation, energy and utility companies, public safety agencies and broadcast network operators around the world. The Company sells products and services directly to its customers and also use agents and resellers.
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