Head to Head Review: AudioCodes (AUDC) vs. Inseego (INSG)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for AudioCodes and Inseego, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AudioCodes 0 1 2 0 2.67
Inseego 0 1 1 0 2.50

AudioCodes currently has a consensus price target of $8.00, suggesting a potential upside of 5.54%. Inseego has a consensus price target of $1.88, suggesting a potential upside of 1.90%. Given AudioCodes’ stronger consensus rating and higher possible upside, equities analysts clearly believe AudioCodes is more favorable than Inseego.

Volatility and Risk

AudioCodes has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Inseego has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
AudioCodes 2.57% 9.82% 5.50%
Inseego -30.71% N/A -24.17%

Insider & Institutional Ownership

25.3% of AudioCodes shares are held by institutional investors. Comparatively, 12.1% of Inseego shares are held by institutional investors. 48.8% of AudioCodes shares are held by company insiders. Comparatively, 4.1% of Inseego shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AudioCodes $156.74 million 1.38 $4.03 million $0.12 63.17
Inseego $243.55 million 0.44 -$60.57 million ($1.22) -1.51

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

Summary

AudioCodes beats Inseego on 12 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.

Inseego Company Profile

Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.

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