AudioCodes (NASDAQ:AUDC) & Sonim Technologies (NASDAQ:SONM) Financial Analysis

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

Institutional and Insider Ownership

31.3% of AudioCodes shares are held by institutional investors. 48.8% of AudioCodes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

AudioCodes pays an annual dividend of $0.11 per share and has a dividend yield of 0.6%. Sonim Technologies does not pay a dividend.

Profitability

This table compares AudioCodes and Sonim Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AudioCodes 8.86% 21.61% 10.10%
Sonim Technologies N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AudioCodes and Sonim Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AudioCodes 0 1 1 0 2.50
Sonim Technologies 0 0 5 0 3.00

AudioCodes presently has a consensus target price of $13.50, suggesting a potential downside of 27.61%. Sonim Technologies has a consensus target price of $17.80, suggesting a potential upside of 79.44%. Given Sonim Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Sonim Technologies is more favorable than AudioCodes.

Valuation & Earnings

This table compares AudioCodes and Sonim Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AudioCodes $176.22 million 3.11 $13.49 million N/A N/A
Sonim Technologies N/A N/A N/A N/A N/A

AudioCodes has higher revenue and earnings than Sonim Technologies.

Summary

AudioCodes beats Sonim Technologies on 7 of the 10 factors compared between the two stocks.

AudioCodes Company Profile

AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers worldwide. The company's products include IP phones, session border controllers (SBC), media gateways, multi-service business routers, huddle room solutions, managed IP Phones, and survivable branch appliances; CloudBond 365, an adaptable solution for the data center, customer premises or the branch; CloudBond 365 CCE appliances; User Management Pack 365, a software management application; VoIP management and routing, a suite of lifecycle applications for large scale cloud or premises-based unified communications deployments. It also provides MobilityPLUS, a mobile VoIP solution; VocaNOM call routing products; SmartTAP call recording products; Auto Attendant, a tool for managing inbound calls and delivery services; Fax Server, a tool for managing inbound and outbound enterprise fax transmissions; SIP Phone Support, a value-added application for SBC and gateways; signal processor chips; communications boards; and voice and data logging hardware integration board products. In addition, the company offers planning, implementation, operations, and support services, as well as consulting and training services. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, system integrators and distributors, and network equipment providers in the telecommunication and networking industries. The company was incorporated in 1992 and is headquartered in Lod, Israel.

Sonim Technologies Company Profile

Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. It offers ruggedized mobile phones, such as Sonim XP8, Sonim XP5s, and Sonim XP3 based on the Android platform that are capable of attaching to public and private wireless networks; industrial-grade accessories, including remote speaker microphones, multi-bay charging accessories, and in-vehicle hands-free voice communications solutions; and cloud-based software and application services. Sonim Technologies, Inc. sells its mobile phones and accessories primarily to wireless carriers in the United States and Canada. The company was formerly known as NaviSpin.com, Inc. and changed its name to Sonim Technologies, Inc. in December 2001. Sonim Technologies, Inc. was incorporated in 1999 and is headquartered in San Mateo, California.

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