Critical Comparison: QUALCOMM (QCOM) & AudioCodes (AUDC)
QUALCOMM (NASDAQ: QCOM) and AudioCodes (NASDAQ:AUDC) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Insider and Institutional Ownership
76.7% of QUALCOMM shares are owned by institutional investors. Comparatively, 22.1% of AudioCodes shares are owned by institutional investors. 0.2% of QUALCOMM shares are owned by insiders. Comparatively, 48.8% of AudioCodes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares QUALCOMM and AudioCodes’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 3.5%. AudioCodes does not pay a dividend. QUALCOMM pays out 138.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QUALCOMM has increased its dividend for 6 consecutive years.
Volatility and Risk
QUALCOMM has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, AudioCodes has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.
Valuation & Earnings
This table compares QUALCOMM and AudioCodes’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|QUALCOMM||$22.29 billion||4.28||$2.47 billion||$1.65||39.25|
|AudioCodes||$145.57 million||1.57||$16.23 million||$0.54||13.33|
QUALCOMM has higher revenue and earnings than AudioCodes. AudioCodes is trading at a lower price-to-earnings ratio than QUALCOMM, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for QUALCOMM and AudioCodes, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
QUALCOMM presently has a consensus target price of $66.50, suggesting a potential upside of 2.69%. AudioCodes has a consensus target price of $7.75, suggesting a potential upside of 7.64%. Given AudioCodes’ stronger consensus rating and higher possible upside, analysts clearly believe AudioCodes is more favorable than QUALCOMM.
QUALCOMM beats AudioCodes on 11 of the 17 factors compared between the two stocks.
QUALCOMM Company Profile
QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA). The Company is engaged in the development and commercialization of the orthogonal frequency division multiple access (OFDMA) family of technologies, including long-term evolution (LTE), which is an Orthogonal Frequency Division Multiplexing (OFDM)-based standard that uses OFDMA and single-carrier Frequency Division Multiple Access (FDMA), for cellular wireless communication applications. The Company’s segments include QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QSI (Qualcomm Strategic Initiatives). The Company also develops and commercializes a range of other technologies used in handsets and tablets that contribute to end user demand. The Company’s products principally consist of integrated circuits (chips or chipsets) and system software used in mobile devices and in wireless networks.
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.
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