AudioCodes (NASDAQ:AUDC) and Powerstorm (OTCMKTS:PSTO) Critical Contrast

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

Analyst Recommendations

This is a breakdown of current ratings for AudioCodes and Powerstorm, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AudioCodes	1	0	1	0	2.00
Powerstorm	0	0	0	0	0.00

AudioCodes currently has a consensus target price of $11.25, indicating a potential upside of 21.10%. Given AudioCodes’ stronger consensus rating and higher possible upside, equities research analysts clearly believe AudioCodes is more favorable than Powerstorm.

Risk & Volatility

AudioCodes has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Powerstorm has a beta of -1.69, suggesting that its stock price is 269% less volatile than the S&P 500.

Earnings and Valuation

This table compares AudioCodes and Powerstorm”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AudioCodes	$242.18 million	1.14	$15.31 million	$0.56	16.59
Powerstorm	N/A	N/A	N/A	N/A	N/A

AudioCodes has higher revenue and earnings than Powerstorm.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AudioCodes	7.11%	10.22%	5.82%
Powerstorm	N/A	N/A	N/A

Insider & Institutional Ownership

68.1% of AudioCodes shares are owned by institutional investors. 48.8% of AudioCodes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

AudioCodes beats Powerstorm on 10 of the 10 factors compared between the two stocks.

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.

About Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.