Radcom (NASDAQ: RDCM) and Avid Technology (OTCMKTS:AVID) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitabiliy, institutional ownership, analyst recommendations, dividends and risk.

Profitability

This table compares Radcom and Avid Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Radcom 2.18% 2.70% 1.94%
Avid Technology -1.84% N/A -3.07%

Valuation and Earnings

This table compares Radcom and Avid Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Radcom $31.00 million 7.48 $351,500.00 $0.08 248.75
Avid Technology $472.49 million 0.41 $66.79 million N/A N/A

Avid Technology has higher revenue and earnings than Radcom.

Insider & Institutional Ownership

18.2% of Radcom shares are owned by institutional investors. 69.0% of Radcom shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Radcom and Avid Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radcom 0 0 2 0 3.00
Avid Technology 0 1 0 0 2.00

Radcom currently has a consensus target price of $27.00, indicating a potential upside of 35.68%. Avid Technology has a consensus target price of $5.00, indicating a potential upside of 5.71%. Given Radcom’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Radcom is more favorable than Avid Technology.

Summary

Radcom beats Avid Technology on 10 of the 12 factors compared between the two stocks.

Radcom Company Profile

RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.

Avid Technology Company Profile

Avid Technology, Inc. is a provider of an open and integrated technology platform, along with applications and services that enable the creation, distribution and monetization of audio and video content. The Company develops, markets, sells and supports software and hardware for digital media content production, management, secured content storage and distribution. The Company’s products are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communication departments, and by independent video and audio creative professionals, as well as aspiring professionals and enthusiasts. Projects produced using its products include feature films, television programs, live events, news broadcasts, commercials, music, video and other digital media content.

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