Analyzing AudioCodes (AUDC) and Aerohive Networks (HIVE)

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

Volatility & Risk

Aerohive Networks has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, AudioCodes has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aerohive Networks and AudioCodes, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 4 0 2.80
AudioCodes 0 1 2 0 2.67

Aerohive Networks presently has a consensus price target of $6.67, suggesting a potential upside of 51.52%. AudioCodes has a consensus price target of $8.00, suggesting a potential upside of 5.54%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Aerohive Networks is more favorable than AudioCodes.

Insider & Institutional Ownership

43.6% of Aerohive Networks shares are held by institutional investors. Comparatively, 25.3% of AudioCodes shares are held by institutional investors. 26.2% of Aerohive Networks shares are held by insiders. Comparatively, 48.8% of AudioCodes shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Aerohive Networks and AudioCodes’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $152.90 million 1.54 -$22.93 million ($0.42) -10.48
AudioCodes $156.74 million 1.38 $4.03 million $0.12 63.17

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

Profitability

This table compares Aerohive Networks and AudioCodes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -14.99% -92.83% -16.10%
AudioCodes 2.57% 9.82% 5.50%

Summary

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

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

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 Aerohive Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aerohive Networks and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply