Hewlett Packard Enterprise Company (HPE) and AudioCodes Ltd. (AUDC) both operate in the communication equipment industry, yet they serve distinct market niches with innovative technology solutions. HPE focuses on enterprise IT infrastructure and intelligent edge computing, while AudioCodes specializes in advanced communication software and unified communications products. This comparison will help you identify which company offers the most compelling investment opportunity in this dynamic sector.
Table of contents
Companies Overview
I will begin the comparison between Hewlett Packard Enterprise Company and AudioCodes Ltd. by providing an overview of these two companies and their main differences.
Hewlett Packard Enterprise Company Overview
Hewlett Packard Enterprise Company focuses on delivering solutions that enable customers to capture, analyze, and act upon data globally. It offers a diverse portfolio including general purpose and workload-optimized servers, storage products, networking hardware, cloud-based management software, and professional services. Founded in 1939 and headquartered in Texas, HPE serves commercial and large enterprise clients through various partners and operates in the communication equipment industry.
AudioCodes Ltd. Overview
AudioCodes Ltd. provides advanced communication software, hardware, and productivity solutions primarily for the digital workplace. Its offerings include session border controllers, VoIP network products, unified communications solutions, and managed services, with a focus on Microsoft Teams and Skype for Business integration. Established in 1992 and based in Israel, AudioCodes markets mainly to telecommunications and networking industries across multiple regions, including the Americas and Europe.
Key similarities and differences
Both HPE and AudioCodes operate in the communication equipment sector, focusing on technology solutions for enterprise customers. HPE delivers a broader range of hardware and software solutions with a large workforce and global reach, while AudioCodes specializes in communication software and VoIP technologies with a smaller, more focused product line. Their business models differ in scale, product diversity, and target markets within the technology landscape.
Income Statement Comparison
This table compares the key income statement metrics for Hewlett Packard Enterprise Company and AudioCodes Ltd. for their most recent fiscal years.
| Metric | Hewlett Packard Enterprise Company | AudioCodes Ltd. |
|---|---|---|
| Market Cap | 29.5B USD | 257M USD |
| Revenue | 34.3B USD | 242M USD |
| EBITDA | 2.63B USD | 21.1M USD |
| EBIT | -110M USD | 17.2M USD |
| Net Income | 57M USD | 15.3M USD |
| EPS | -0.045 USD | 0.51 USD |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Hewlett Packard Enterprise Company
HPE’s revenue exhibited a favorable growth trend, rising 14.06% in the latest year and 23.08% over the 2021-2025 period. Gross margins remained stable at around 28.77%, considered favorable. However, net income drastically declined, reflected in a net margin of just 0.17%, with operating income falling sharply in 2025, signaling margin compression and profit challenges despite revenue gains.
AudioCodes Ltd.
AudioCodes showed a slight revenue decline of 0.9% in 2024, yet gross margin stayed high at 65.31%, a favorable indicator. Net income and net margin improved substantially in the latest year, with net margin reaching 6.32%, supported by a 7.87% EBIT growth. Overall revenue rose 9.69% across 2020-2024, but net income contracted by 43.81%, revealing mixed but improving profitability trends.
Which one has the stronger fundamentals?
AudioCodes displays stronger fundamentals with a favorable global income statement evaluation, higher gross and net margins, and improving profitability despite recent revenue softness. In contrast, HPE’s revenue growth contrasts with a significantly weakened net margin and negative earnings growth, leading to an unfavorable overall income statement opinion, indicating more pronounced financial pressures.
Financial Ratios Comparison
The following table presents the most recent financial ratios for Hewlett Packard Enterprise Company (HPE) and AudioCodes Ltd. (AUDC) based on their latest fiscal year data, offering a snapshot of key performance and financial health metrics.
| Ratios | Hewlett Packard Enterprise Company (2025) | AudioCodes Ltd. (2024) |
|---|---|---|
| ROE | 0.23% | 7.98% |
| ROIC | -0.59% | 6.51% |
| P/E | 567.2 | 19.2 |
| P/B | 1.31 | 1.53 |
| Current Ratio | 1.01 | 2.09 |
| Quick Ratio | 0.76 | 1.69 |
| D/E | 0.91 | 0.19 |
| Debt-to-Assets | 29.5% | 10.9% |
| Interest Coverage | 9.39 | 58.1 |
| Asset Turnover | 0.45 | 0.72 |
| Fixed Asset Turnover | 5.71 | 4.05 |
| Payout Ratio | 13.96% | 71.2% |
| Dividend Yield | 2.46% | 3.70% |
Interpretation of the Ratios
Hewlett Packard Enterprise Company
HPE shows a mixed financial profile with several unfavorable ratios such as a very high P/E of 567.23 and negative return on invested capital at -59%, indicating challenges in profitability and capital efficiency. The current ratio is neutral at 1.01, but the quick ratio and interest coverage are weak, raising liquidity concerns. The dividend yield is favorable at 2.46%, supported by stable dividends, though negative free cash flow to equity suggests risks in sustaining distributions.
AudioCodes Ltd.
AudioCodes presents a generally balanced ratio set with favorable liquidity metrics, including a current ratio of 2.09 and quick ratio of 1.69, supporting good short-term financial health. Profitability measures like net margin and return on invested capital are neutral, while interest coverage is strongly favorable at 58.08, indicating low financial risk. The dividend yield is attractive at 3.7%, with a moderate P/E of 19.21, reflecting reasonable valuation and shareholder returns.
Which one has the best ratios?
Comparing both, AudioCodes exhibits a more favorable ratio profile with stronger liquidity, interest coverage, and a reasonable valuation, alongside an attractive dividend yield. HPE’s ratios highlight significant concerns in profitability and cash flow sustainability despite a decent dividend yield. Overall, AudioCodes’ ratios appear slightly more favorable in terms of financial stability and risk management.
Strategic Positioning
This section compares the strategic positioning of Hewlett Packard Enterprise Company (HPE) and AudioCodes Ltd. (AUDC), including market position, key segments, and exposure to technological disruption:
HPE
- Large market cap of 29.5B facing competitive pressure in communication equipment sector.
- Diversified segments: Servers, Hybrid Cloud, Networking, Financial Services drive revenues.
- Invests in advanced data solutions and cloud-based management, exposed to digital innovation.
AUDC
- Smaller market cap of 257M, operating in communication equipment with moderate competitive pressure.
- Focused on communications software and products for unified communications and service providers.
- Provides VoiceAI and cloud services, heavily focused on unified communications technology.
HPE vs AUDC Positioning
HPE shows a diversified business model spanning multiple IT infrastructure segments, offering broader market exposure. AUDC is more concentrated on unified communications and VoiceAI, potentially limiting scale but focusing innovation.
Which has the best competitive advantage?
Both companies exhibit very unfavorable MOAT evaluations with declining ROIC and value destruction, indicating weak sustainable competitive advantages based on efficient capital use.
Stock Comparison
The stock price movements over the past 12 months reveal a clear divergence in performance, with Hewlett Packard Enterprise Company showing a strong bullish trend despite recent deceleration, while AudioCodes Ltd. experiences a pronounced bearish trend with accelerating decline.
Trend Analysis
Hewlett Packard Enterprise Company’s stock demonstrated a bullish trend over the past year with a 47.52% price increase, though recent data from November 2025 to January 2026 shows a mild -8.72% pullback and deceleration in momentum.
AudioCodes Ltd.’s stock followed a bearish trend with a -32.36% price drop over the past year, showing accelerating decline, while its recent loss of -1.23% suggests continuing weakness but with less volatility.
Comparing both, Hewlett Packard Enterprise Company delivered the highest market performance, outperforming AudioCodes Ltd. significantly in price appreciation during the 12-month period.
Target Prices
Here is the reliable target price consensus for Hewlett Packard Enterprise Company and AudioCodes Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Hewlett Packard Enterprise Company | 31 | 21 | 27.25 |
| AudioCodes Ltd. | 24 | 14 | 19 |
Analysts expect HPE’s stock to rise above its current price of 22.30 USD, suggesting moderate upside potential. AudioCodes shows a consensus target more than double its current price of 8.82 USD, indicating strong growth expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Hewlett Packard Enterprise Company (HPE) and AudioCodes Ltd. (AUDC):
Rating Comparison
HPE Rating
- Rating: B-, classified as Very Favorable overall.
- Discounted Cash Flow Score: 4, indicating Favorable valuation.
- ROE Score: 2, considered Moderate efficiency in profit generation.
- ROA Score: 2, Moderate asset utilization.
- Debt To Equity Score: 1, Very Unfavorable financial risk.
- Overall Score: 2, Moderate overall financial standing.
AUDC Rating
- Rating: A-, classified as Very Favorable overall.
- Discounted Cash Flow Score: 4, indicating Favorable valuation.
- ROE Score: 3, showing Moderate but higher efficiency than HPE.
- ROA Score: 3, Moderate asset utilization, better than HPE.
- Debt To Equity Score: 3, Moderate financial risk, stronger balance sheet than HPE.
- Overall Score: 4, Favorable overall financial standing.
Which one is the best rated?
Based strictly on the provided data, AUDC holds a better overall rating and scores higher across key metrics such as ROE, ROA, debt-to-equity, and overall score compared to HPE, which has a moderate overall rating and weaker debt management.
Scores Comparison
The comparison of the Altman Z-Score and Piotroski Score for HPE and AUDC is as follows:
HPE Scores
- Altman Z-Score: 0.75, in distress zone indicating high risk of bankruptcy.
- Piotroski Score: 5, average financial strength.
AUDC Scores
- Altman Z-Score: 2.19, in grey zone indicating moderate bankruptcy risk.
- Piotroski Score: 7, strong financial strength.
Which company has the best scores?
AUDC has a higher Altman Z-Score and Piotroski Score compared to HPE, showing relatively better financial stability and strength based on the provided data.
Grades Comparison
Here is a comparison of recent reliable grades assigned to Hewlett Packard Enterprise Company and AudioCodes Ltd.:
Hewlett Packard Enterprise Company Grades
The table below summarizes recent grades from reputable grading companies for HPE.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Argus Research | Maintain | Buy | 2025-12-10 |
| BWG Global | Upgrade | Positive | 2025-11-24 |
| Morgan Stanley | Downgrade | Equal Weight | 2025-11-17 |
| Barclays | Maintain | Overweight | 2025-10-16 |
| Goldman Sachs | Maintain | Neutral | 2025-10-16 |
| UBS | Maintain | Neutral | 2025-10-16 |
| Citigroup | Maintain | Buy | 2025-10-06 |
| Goldman Sachs | Maintain | Neutral | 2025-10-02 |
| Citigroup | Maintain | Buy | 2025-09-04 |
| UBS | Maintain | Neutral | 2025-09-04 |
Overall, HPE’s grades show a mixed but generally stable outlook, with multiple “Buy” and “Neutral” ratings and one recent downgrade to “Equal Weight.”
AudioCodes Ltd. Grades
The table below provides recent grades from recognized grading companies for AUDC.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2025-05-07 |
| Needham | Maintain | Buy | 2025-02-05 |
| Barclays | Maintain | Underweight | 2025-02-05 |
| Needham | Maintain | Buy | 2025-01-21 |
| Barclays | Maintain | Underweight | 2024-11-07 |
| Needham | Maintain | Buy | 2024-11-07 |
| Needham | Maintain | Buy | 2024-07-31 |
| Needham | Maintain | Buy | 2024-05-09 |
| Barclays | Maintain | Underweight | 2024-05-08 |
| Barclays | Maintain | Underweight | 2024-02-07 |
AUDC’s grades consistently alternate between “Buy” by Needham and “Underweight” by Barclays, indicating divergent views among analysts.
Which company has the best grades?
HPE’s grades display more balance with several “Buy” and neutral ratings from multiple firms, while AUDC exhibits conflicting assessments between “Buy” and “Underweight.” Investors may view HPE’s wider analyst coverage and stable ratings as a sign of moderate consensus, whereas AUDC shows more polarized opinions, which could imply higher uncertainty.
Strengths and Weaknesses
Below is a comparative overview of the key strengths and weaknesses of Hewlett Packard Enterprise Company (HPE) and AudioCodes Ltd. (AUDC) based on their most recent financial and operational data.
| Criterion | Hewlett Packard Enterprise Company (HPE) | AudioCodes Ltd. (AUDC) |
|---|---|---|
| Diversification | High diversification with segments in Hybrid Cloud, Networking, Server, and Financial Services; revenues spread across multiple technology sectors (~$17.7B in Server, $6.85B in Networking in 2025) | Moderate diversification with focus on Products and Services in networking technology (~$111.9M Products, $130.2M Service in 2024) |
| Profitability | Low profitability with negative ROIC (-0.59% in 2025), unfavorable net margin (0.17%), and declining returns indicating value destruction | Moderate profitability with neutral ROIC (6.51%), positive net margin (6.32%), and favorable interest coverage (58.08) |
| Innovation | Moderate innovation supported by investments in Intelligent Edge and Hybrid Cloud segments, but declining ROIC suggests challenges in capital efficiency | Appears innovative in its niche with steady product and service revenues, though overall ROIC trend is slightly declining |
| Global presence | Strong global presence with large-scale enterprise client base and extensive product portfolio | Smaller scale global presence focused on specialized networking solutions |
| Market Share | Significant market share in enterprise IT infrastructure sectors, but facing profitability and efficiency pressures | Niche market player with stable but limited market share in communication and networking technology |
Key takeaways: HPE exhibits broad diversification and significant market reach but suffers from declining profitability and inefficient capital use, signaling caution for investors. AudioCodes shows more favorable financial ratios and focused market presence, which may offer steadier, if smaller-scale, investment potential. Risk management is crucial when considering HPE due to its value destruction trend, whereas AUDC’s more balanced profile suggests moderate risk.
Risk Analysis
Below is a comparative table highlighting key risks for Hewlett Packard Enterprise Company (HPE) and AudioCodes Ltd. (AUDC) based on the most recent data available:
| Metric | Hewlett Packard Enterprise Company (HPE) | AudioCodes Ltd. (AUDC) |
|---|---|---|
| Market Risk | Beta 1.33 indicates moderate volatility. | Beta 1.05 shows slightly lower volatility. |
| Debt level | Debt-to-Equity neutral at 0.91; interest coverage unfavorable (-0.63), signaling debt servicing challenges. | Low debt-to-equity at 0.19; strong interest coverage (58.08), indicating solid debt management. |
| Regulatory Risk | Moderate, given global operations in multiple jurisdictions. | Moderate, operating mainly in Israel and global telecom markets. |
| Operational Risk | Unfavorable net margin (0.17%) and ROIC (-59%) suggest operational inefficiencies. | Neutral to favorable operational ratios, with net margin at 6.3%. |
| Environmental Risk | Standard for tech sector; no major exposures reported. | Standard for tech sector; no major exposures reported. |
| Geopolitical Risk | US-based with broad international exposure, some risk from global trade dynamics. | Israeli-based, with potential regional geopolitical tensions impacting operations. |
HPE faces significant operational and debt servicing risks, reflected in weak profitability and negative interest coverage, increasing financial distress probability. AUDC demonstrates stronger financial health with manageable debt and solid operational metrics but carries geopolitical risks due to its regional base. Investors should weigh HPE’s financial fragility against AUDC’s geopolitical exposure.
Which Stock to Choose?
Hewlett Packard Enterprise Company (HPE) shows a mixed income evolution with 14.1% revenue growth in 2025 but declining profitability and negative ROIC. Its financial ratios are slightly unfavorable overall, with high net debt and weak interest coverage despite a favorable dividend yield. The company’s rating is very favorable (B-) with moderate scores in ROE and assets but very unfavorable debt and valuation metrics.
AudioCodes Ltd. (AUDC) presents a generally favorable income statement with strong gross margin and improving net margin in 2024, though revenue declined slightly. Financial ratios appear slightly favorable, supported by solid liquidity, low debt, and strong interest coverage. Its rating is very favorable (A-) with favorable overall scores and a strong Piotroski score, yet the company also shows value destruction through declining ROIC.
For investors prioritizing financial stability and liquidity, AUDC might appear more favorable given its stronger ratio profile and rating. Conversely, those focused on market capitalization and recent bullish momentum may find HPE’s larger scale and revenue growth more appealing despite its financial challenges. The choice could depend on whether the investor leans toward stability or growth orientation amid contrasting profitability and risk metrics.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Hewlett Packard Enterprise Company and AudioCodes Ltd. to enhance your investment decisions:
