Head-To-Head Comparison: AudioCodes (NASDAQ:AUDC) & Allot (NASDAQ:ALLT)

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

Earnings & Valuation

This table compares Allot and AudioCodes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allot	$101.99 million	3.91	$3.70 million	$0.22	36.73
AudioCodes	$245.60 million	1.11	$8.95 million	$0.26	43.54

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

Volatility & Risk

Allot has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, AudioCodes has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Allot and AudioCodes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allot	1	1	4	0	2.50
AudioCodes	0	1	0	0	2.00

Allot currently has a consensus target price of $13.38, suggesting a potential upside of 65.53%. Given Allot’s stronger consensus rating and higher probable upside, analysts plainly believe Allot is more favorable than AudioCodes.

Insider and Institutional Ownership

51.5% of Allot shares are owned by institutional investors. Comparatively, 68.0% of AudioCodes shares are owned by institutional investors. 3.4% of Allot shares are owned by insiders. Comparatively, 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allot	9.40%	9.64%	5.99%
AudioCodes	2.83%	6.79%	3.45%

Summary

Allot beats AudioCodes on 8 of the 14 factors compared between the two stocks.

About Allot

Allot Communications Ltd. is a provider of leading innovative network intelligence and security solutions for service providers worldwide, enhancing value to their customers. Their solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security services, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1000 enterprises. Their industry leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers in Europe.

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.