Reviewing Silicom (SILC) and Aviat Networks (AVNW)
Silicom (NASDAQ: SILC) and Aviat Networks (NASDAQ:AVNW) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
This is a summary of current ratings and target prices for Silicom and Aviat Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silicom presently has a consensus target price of $67.00, suggesting a potential upside of 28.50%. Given Silicom’s higher probable upside, equities research analysts clearly believe Silicom is more favorable than Aviat Networks.
Valuation and Earnings
This table compares Silicom and Aviat Networks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silicom||$108.60 million||3.56||$21.38 million||$1.93||27.02|
|Aviat Networks||$243.70 million||0.34||-$5.71 million||($2.77)||-5.59|
Silicom has higher revenue, but lower earnings than Aviat Networks. Aviat Networks is trading at a lower price-to-earnings ratio than Silicom, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
25.5% of Silicom shares are owned by institutional investors. Comparatively, 48.9% of Aviat Networks shares are owned by institutional investors. 25.4% of Silicom shares are owned by insiders. Comparatively, 6.7% of Aviat Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Silicom has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Aviat Networks has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Silicom pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Aviat Networks does not pay a dividend. Silicom pays out 51.8% of its earnings in the form of a dividend.
This table compares Silicom and Aviat Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Silicom beats Aviat Networks on 11 of the 14 factors compared between the two stocks.
Silicom Company Profile
Silicom Ltd. (Silicom) is engaged in the design, manufacture, marketing and support of networking and data infrastructure solutions for a range of servers, server-based systems and communications devices. The Company’s products include server network interface cards with and without bypass (Server Adapters); Intelligent and programmable cards, with features, such as encryption, acceleration, data compression, redirection, time stamping, network capture solutions, field programmable gate array (FPGA) based ultra-low latency solutions, and/or other offload features and/or compute blades (Smart Cards), and standalone Products. The Company’s market segments for its products include network appliances; servers; data storage, including Big Data; The Cloud, virtualized data centers, with and without software-defined networking (SDN), and Internet of Things (IOT).
Aviat Networks Company Profile
Aviat Networks, Inc., together with its subsidiaries, is a supplier of microwave networking solutions. The Company’s product categories include point-to-point microwave and millimeter wave radios that are licensed (subject to local frequency regulatory requirements), lightly-licensed and license-exempt (operating in license-exempt frequencies), and element and network management software. In addition, it provides a range of professional services enabling it to deliver turnkey networks, including design, deployment, maintenance and managed services. It designs, manufactures and sells a range of wireless networking products, solutions and services to mobile and fixed public network operators, private network operators, Federal, State and Local government agencies, transportation, energy and utility companies, public safety agencies and broadcast network operators around the world. The Company sells products and services directly to its customers and also use agents and resellers.
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