Head-To-Head Survey: Silicom (NASDAQ:SILC) & Radcom (NASDAQ:RDCM)

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

Analyst Recommendations

This is a summary of current ratings for Silicom and Radcom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicom	0	1	0	0	2.00
Radcom	0	0	1	0	3.00

Radcom has a consensus target price of $18.00, indicating a potential upside of 42.86%. Given Radcom’s stronger consensus rating and higher possible upside, analysts clearly believe Radcom is more favorable than Silicom.

Volatility & Risk

Silicom has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Radcom has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Silicom and Radcom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicom	$58.13 million	1.49	-$13.71 million	($1.94)	-7.87
Radcom	$61.01 million	3.23	$6.97 million	$0.54	23.33

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

Profitability

This table compares Silicom and Radcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silicom	-19.57%	-8.67%	-7.39%
Radcom	13.62%	9.61%	7.13%

Insider & Institutional Ownership

52.8% of Silicom shares are owned by institutional investors. Comparatively, 48.3% of Radcom shares are owned by institutional investors. 25.4% of Silicom shares are owned by company insiders. Comparatively, 69.0% of Radcom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Radcom beats Silicom on 12 of the 14 factors compared between the two stocks.

About Silicom

Silicom Ltd., together with its subsidiaries, designs, manufactures, markets, and supports networking and data infrastructure solutions for servers, server-based systems, and communications devices. It offers server network interface cards; and smart cards, such as smart server adapters, which include redirector and switching cards, encryption and data compression hardware acceleration cards, forward error correction acceleration and offloading cards, time synchronization cards, and field programmable gate array-based cards. The company also provides virtualized and universal customer-premises equipment; and edge devices for SD-WAN, secure access service edge, Telco dedicated routers, and NFV deployments. It serves original equipment manufacturing, cloud, telco, mobile, and related service provider markets. The company operates in the United States, North America, Israel, Europe, and the Asia Pacific. Silicom Ltd. was incorporated in 1987 and is headquartered in Kfar Saba, Israel.

About Radcom

RADCOM Ltd. provides 5G ready cloud-native, network intelligence, and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution (LTE), voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly to customers through executives and sales representatives, as well as through a network of distributors and resellers in North America, Asia Pacific, Latin America, Europe, the Middle East, Africa, and Israel. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was incorporated in 1985 and is headquartered in Tel Aviv, Israel.