Head-To-Head Contrast: UTStarcom (NASDAQ:UTSI) versus AudioCodes (NASDAQ:AUDC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UTStarcom	N/A	N/A	N/A
AudioCodes	5.66%	9.65%	5.45%

Insider and Institutional Ownership

1.8% of UTStarcom shares are owned by institutional investors. Comparatively, 68.1% of AudioCodes shares are owned by institutional investors. 2.7% of UTStarcom shares are owned by insiders. Comparatively, 48.8% of AudioCodes shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UTStarcom	$10.88 million	2.12	-$4.37 million	N/A	N/A
AudioCodes	$243.25 million	1.12	$15.31 million	$0.45	21.13

AudioCodes has higher revenue and earnings than UTStarcom.

Risk and Volatility

UTStarcom has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, AudioCodes has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for UTStarcom and AudioCodes, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UTStarcom	1	0	0	0	1.00
AudioCodes	1	2	1	0	2.00

AudioCodes has a consensus price target of $11.25, indicating a potential upside of 18.30%. Given AudioCodes’ stronger consensus rating and higher probable upside, analysts clearly believe AudioCodes is more favorable than UTStarcom.

Summary

AudioCodes beats UTStarcom on 11 of the 12 factors compared between the two stocks.

About UTStarcom

UTStarcom Holdings Corp. operates as a telecom infrastructure provider to develop technology for bandwidth from cloud-based services, mobile, streaming, and other applications in China, India, Japan, and internationally. Its products include converged packet transport, disaggregated router platform, packet transport network, packet aggregation network, multi-services access network, fiber to the X, carrier Wi-Fi solutions, and software defined network controller products. The company also offers packet optical and network synchronization products. It serves telecommunications operators and equipment distributors. The company was founded in 1991 and is based in Hangzhou, the People's Republic of China.

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.