Critical Survey: AudioCodes (NASDAQ:AUDC) and SharpLink Gaming (NASDAQ:SBET)

AudioCodes (NASDAQ:AUDC) and SharpLink Gaming (NASDAQ:SBET) 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 valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Insider and Institutional Ownership

42.5% of AudioCodes shares are owned by institutional investors. Comparatively, 2.4% of SharpLink Gaming shares are owned by institutional investors. 48.8% of AudioCodes shares are owned by company insiders. Comparatively, 59.1% of SharpLink Gaming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for AudioCodes and SharpLink Gaming, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AudioCodes 1 0 1 0 2.00
SharpLink Gaming 0 0 0 0 N/A

AudioCodes presently has a consensus price target of $36.00, suggesting a potential upside of 11.32%. Given AudioCodes’ higher probable upside, equities analysts plainly believe AudioCodes is more favorable than SharpLink Gaming.

Profitability

This table compares AudioCodes and SharpLink Gaming’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AudioCodes 14.31% 21.02% 12.27%
SharpLink Gaming N/A N/A N/A

Valuation and Earnings

This table compares AudioCodes and SharpLink Gaming’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AudioCodes $220.77 million 4.79 $27.25 million $1.15 28.12
SharpLink Gaming $4.02 million 9.27 -$1.82 million N/A N/A

AudioCodes has higher revenue and earnings than SharpLink Gaming.

Risk and Volatility

AudioCodes has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, SharpLink Gaming has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Summary

AudioCodes beats SharpLink Gaming on 9 of the 12 factors compared between the two stocks.

AudioCodes Company Profile

AudioCodes Ltd. engages in the development, manufacture, and market of products for transferring voice and data over the internet. Its products include products for Microsoft 365, session border controllers, multi-service business routers, internet protocol phones, digital and analog media gateways, management products and solutions, and voice applications. The company was founded by Shabtai Adlersberg in 1992 and is headquartered in Lod, Israel.

SharpLink Gaming Company Profile

SharpLink Gaming Ltd. provides an online platform facilitating sports betting. It is a online technology company that connects sports fans, leagues and sports websites to relevant and timely sports betting content. The firm’s intelligent sports betting conversion and engagement technology delivers and determines the best sportsbook betting offers and experience for each identified user. SharpLink’s solutions include affilaite marketing and sports gaming client services. The company was founded in 2019 by Christopher Nicholas and Robert Phythian and is headquartered in Minneapolis, MN.

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