Financial Comparison: AudioCodes (NASDAQ:AUDC) versus Comba Telecom Systems (OTCMKTS:COBJF)

Comba Telecom Systems (OTCMKTS:COBJF) and AudioCodes (NASDAQ:AUDC) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Comba Telecom Systems and AudioCodes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comba Telecom Systems	N/A	N/A	N/A
AudioCodes	2.83%	6.79%	3.45%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Comba Telecom Systems and AudioCodes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comba Telecom Systems	0	0	0	0	0.00
AudioCodes	0	2	0	0	2.00

Earnings and Valuation

This table compares Comba Telecom Systems and AudioCodes”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comba Telecom Systems	N/A	N/A	N/A	($0.01)	-11.31
AudioCodes	$245.60 million	0.98	$8.95 million	$0.26	38.50

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

Institutional & Insider Ownership

11.0% of Comba Telecom Systems shares are owned by institutional investors. Comparatively, 68.0% of AudioCodes shares are owned by institutional investors. 48.8% of AudioCodes shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

AudioCodes beats Comba Telecom Systems on 9 of the 9 factors compared between the two stocks.

About Comba Telecom Systems

Comba Telecom Systems Holdings Limited, an investment holding company, research, develops, manufactures, and sells wireless telecommunications network system equipment and related engineering services in Mainland China, rest of Asia Pacific, the Americas, the European Union, the Middle East, and internationally. It operates through two segments: Wireless Telecommunications Network System Equipment and Services, and Operator Telecommunication Services. The company provides base station antennas and subsystems; open radio; ScanViS; and network system products, as well as cell site and enterprise solutions; consultancy, DAS network design, maintenance, and network optimization; and technical support, value-added, and repairing services. It engages in assembling, trading, and marketing of wireless telecommunications network system equipment; manufacture and sale of intelligent machinery; research and development, and trading of digital microwave system equipment; marketing; and provision of hardware and software solutions and services. It serves the airport, education, government and public safety, healthcare, hospitality, retail, stadium, and transportation industries. The company was founded in 1995 and is headquartered in Tai Po, Hong Kong.

About AudioCodes

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace worldwide. The company offers solutions, products, and services for unified communications, contact centers, hosted business services, Voice.AI, and service provider businesses. Its products include session border controllers, life cycle management solutions, VoIP network routing solutions, media gateways and servers, multi-service business routers, IP phones solutions, and value-added applications, as well as professional services. The company also offers One Voice Operations Center, a voice network management solution; Device Manager for administering business phones and meeting room solutions; AudioCodes Routing Manager for handling call routing in VoIP networks; and User Management Pack 365 simplifies user lifecycle and identity management across Microsoft Teams and Skype for Business deployments. In addition, it provides AudioCodes Live for Microsoft Teams, a portfolio of managed services for simplifying Teams adoption; appliances for Microsoft Skype/Teams for Business, such as survivable branch appliances, CCE, and CloudBond 365; and a range of value-added voice applications comprising SmartTAP, Voca, VoiceAI Connect, and Meeting Insights. Further, the company offers managed services; and AudioCodes Live Platform is a SaaS solution that enables service providers to offer their business customers a seamless migration to uCaaS solutions, such as Microsoft Teams and Zoom Phone. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, network equipment providers, and systems integrators, enterprises, carriers, and distributors in the telecommunications and networking industries. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.