Financial Comparison: Aviat Networks (AVNW) vs. Silicom (SILC)
Silicom (NASDAQ: SILC) and Aviat Networks (NASDAQ:AVNW) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
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 pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Aviat Networks does not pay a dividend. Silicom pays out 51.8% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for Silicom and Aviat Networks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silicom presently has a consensus price target of $67.00, indicating a potential upside of 15.94%. Given Silicom’s higher probable upside, equities research analysts plainly believe Silicom is more favorable than Aviat Networks.
Insider and Institutional Ownership
21.8% of Silicom shares are owned by institutional investors. Comparatively, 50.5% of Aviat Networks shares are owned by institutional investors. 25.4% of Silicom shares are owned by company insiders. Comparatively, 6.7% of Aviat Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Silicom and Aviat Networks’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silicom||$108.60 million||3.96||$21.38 million||$1.93||29.94|
|Aviat Networks||$241.87 million||0.37||$5.44 million||($0.17)||-98.11|
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.
Risk & Volatility
Silicom has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Aviat Networks has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
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.
Receive News & Stock Ratings for Silicom Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Silicom Ltd and related stocks with our FREE daily email newsletter.