Analyzing AudioCodes (AUDC) & Airgain (AIRG)

AudioCodes (NASDAQ: AUDC) and Airgain (NASDAQ:AIRG) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Institutional and Insider Ownership

22.1% of AudioCodes shares are held by institutional investors. Comparatively, 24.5% of Airgain shares are held by institutional investors. 48.8% of AudioCodes shares are held by company insiders. Comparatively, 23.4% of Airgain shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for AudioCodes and Airgain, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AudioCodes 0 1 2 0 2.67
Airgain 0 0 4 0 3.00

AudioCodes currently has a consensus price target of $7.75, suggesting a potential upside of 4.73%. Airgain has a consensus price target of $15.75, suggesting a potential upside of 43.97%. Given Airgain’s stronger consensus rating and higher probable upside, analysts clearly believe Airgain is more favorable than AudioCodes.

Profitability

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

Net Margins Return on Equity Return on Assets
AudioCodes 11.84% 8.33% 4.75%
Airgain 3.34% 5.95% 4.88%

Valuation & Earnings

This table compares AudioCodes and Airgain’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AudioCodes $145.57 million 1.62 $16.23 million $0.54 13.70
Airgain $43.43 million 2.41 $3.73 million $0.17 64.36

AudioCodes has higher revenue and earnings than Airgain. AudioCodes is trading at a lower price-to-earnings ratio than Airgain, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

AudioCodes has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Airgain has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Summary

Airgain beats AudioCodes on 8 of the 14 factors compared between the two stocks.

AudioCodes Company Profile

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.

Airgain Company Profile

Airgain, Inc. is a provider of embedded antenna technologies used to enable wireless networking across a range of home, enterprise and industrial devices. The Company’s antennas are found in devices deployed in carrier, enterprise and residential wireless networks and systems, including set top boxes, access points, routers, gateways and digital televisions. It offers six product lines, including MaxBeam High Gain Embedded Antennas, Profile Embedded Antennas, Profile Contour Embedded Antennas, Ultra Embedded Antennas, OmniMax High Performance External Antennas and MaxBeam Carrier Class Antennas. The Company, through its design, integration and testing of embedded antenna technology, provides its technology to the residential wireless local area network, wireless fidelity and antenna market, and also supplies to carriers, original equipment manufacturers, original design manufacturers and system designers. The Company supplies its products in the United States, Europe, Canada and Asia.

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