Comparing Viavi Solutions (VIAV) & AudioCodes (AUDC)

Viavi Solutions (NASDAQ: VIAV) and AudioCodes (NASDAQ:AUDC) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Viavi Solutions and AudioCodes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viavi Solutions 3.94% 9.60% 3.62%
AudioCodes 2.57% 9.82% 5.50%

Volatility & Risk

Viavi Solutions has a beta of 1.8, suggesting that its stock price is 80% 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 Ratings

This is a summary of current recommendations for Viavi Solutions and AudioCodes, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viavi Solutions 0 2 6 0 2.75
AudioCodes 0 1 2 0 2.67

Viavi Solutions currently has a consensus target price of $11.93, suggesting a potential upside of 22.97%. AudioCodes has a consensus target price of $8.00, suggesting a potential upside of 11.27%. Given Viavi Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Viavi Solutions is more favorable than AudioCodes.

Earnings and Valuation

This table compares Viavi Solutions and AudioCodes’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viavi Solutions $811.40 million 2.68 $166.90 million $0.13 73.46
AudioCodes $156.74 million 1.46 $4.03 million $0.12 59.92

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

Institutional and Insider Ownership

92.8% of Viavi Solutions shares are held by institutional investors. Comparatively, 22.8% of AudioCodes shares are held by institutional investors. 0.6% of Viavi Solutions shares are held by company insiders. Comparatively, 48.8% of AudioCodes shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Viavi Solutions beats AudioCodes on 11 of the 14 factors compared between the two stocks.

About Viavi Solutions

Viavi Solutions Inc. (Viavi) is a provider of network test, monitoring and assurance solutions to communications service providers, enterprises and their ecosystems. The Company also offers thin film optical coatings, providing light management solutions to anti-counterfeiting, consumer and industrial, government and healthcare and other markets. The Company’s segments include Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP). The NE segment provides testing solutions that access the network to perform build-out and maintenance tasks. The SE segment offers solutions, which are embedded systems that yield network, service and application performance data. The OSP segment provides optical security solutions. The OSP segment’s security offerings for the currency market include Optically Variable Pigment (OVP), Optically Variable Magnetic Pigment (OVMP) and banknote thread substrates.

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.

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