AAP (OTCMKTS:AAPJ) and AudioCodes (NASDAQ:AUDC) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
This table compares AAP and AudioCodes’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for AAP and AudioCodes, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AudioCodes has a consensus target price of $40.83, indicating a potential upside of 43.58%. Given AudioCodes’ higher possible upside, analysts clearly believe AudioCodes is more favorable than AAP.
Insider and Institutional Ownership
34.6% of AudioCodes shares are held by institutional investors. 4.5% of AAP shares are held by insiders. Comparatively, 48.8% of AudioCodes shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
AAP has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, AudioCodes has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.
Valuation and Earnings
This table compares AAP and AudioCodes’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AudioCodes||$200.29 million||4.69||$3.98 million||$0.72||39.50|
AudioCodes has higher revenue and earnings than AAP.
AudioCodes beats AAP on 9 of the 9 factors compared between the two stocks.
AAP Company Profile
AAP, Inc. provides power, comfort, and control systems for motor coaches, trucks, specialty vehicles, trailers, and other applications worldwide. The company offers air conditioning/heating systems, HVAC accessories, inverters and battery chargers, air purifiers, sound attenuating foams, refrigerators/freezers, icemakers, coolers, automatic computerized voltage disconnect systems, DC electrical systems, electrical start assist devices, and power transfer switches. It serves communication, medical, fire, rescue, race car transporter, recreational vehicle, trucking, and luxury motor coach and special purpose vehicle industries. The company offers its products under the AAP Inc., Dometic, and Vitrifrigo America brands. The company was formerly known as Borneo Energy USA, Inc. and changed its name to AAP, Inc. in September 2011. AAP, Inc. was founded in 1980 and is based in Milford, Virginia.
AudioCodes Company Profile
AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers. The company's products include IP phones, session border controllers (SBC), media gateways, multi-service business routers, managed IP phones, residential gateways, media servers, mobile communications solutions, value added applications, life cycle management solutions, professional services, and survivable branch appliances; device manager; CloudBond 365, an adaptable solution for the data center, customer premises or the branch; CloudBond 365 CCE appliances; User Management Pack 365, a software management application; and VoIP management and routing, a suite of lifecycle applications for large scale cloud or premises-based unified communications deployments. It also provides VocaNOM call routing products; SmartTAP call recording products; Auto Attendant, a tool for managing inbound calls and delivery services; signal processor chips; communications boards; and voice and data logging hardware integration board products. In addition, the company offers planning, implementation, operations, and support services, as well as consulting and training services. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, system integrators and distributors, and network equipment providers in the telecommunication and networking industries. The company operates in the Americas, Europe, the Far East, and Israel. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.
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