In the fast-evolving Communication Equipment sector, Zebra Technologies Corporation (ZBRA) and AudioCodes Ltd. (AUDC) stand out with distinct yet overlapping innovation strategies. Zebra focuses on enterprise asset intelligence and data capture solutions, while AudioCodes leads in advanced communications software and unified communications products. This comparison explores their market positions and growth potential to help you identify which company aligns best with your investment goals. Let’s dive into the key factors shaping their futures.
Table of contents
Companies Overview
I will begin the comparison between Zebra Technologies Corporation and AudioCodes Ltd. by providing an overview of these two companies and their main differences.
Zebra Technologies Corporation Overview
Zebra Technologies Corporation operates globally in the automatic identification and data capture industry, focusing on enterprise asset intelligence solutions. Its product portfolio includes printers for labels and RFID encoding, barcode scanners, mobile computing devices, and software for workforce and inventory management. Zebra serves diverse sectors such as retail, manufacturing, transportation, and healthcare, emphasizing physical asset tracking and real-time location systems.
AudioCodes Ltd. Overview
AudioCodes Ltd. specializes in advanced communications software and products targeting the digital workplace, including unified communications and contact center solutions. Its offerings encompass session border controllers, VoIP network equipment, voice applications, and managed services for platforms like Microsoft Teams. The company markets mainly to OEMs, network providers, and systems integrators across the Americas, Europe, and Israel, focusing on voice network management and service provider solutions.
Key similarities and differences
Both Zebra and AudioCodes operate in the Communication Equipment industry with a technology sector focus, offering hardware and software solutions. Zebra emphasizes asset intelligence and physical tracking technologies, while AudioCodes centers on voice communication and digital collaboration software. Zebra’s operations span broader industries, whereas AudioCodes concentrates on telecommunications and networking markets, reflecting distinct business models within the same sector.
Income Statement Comparison
The table below presents a direct comparison of key income statement metrics for Zebra Technologies Corporation and AudioCodes Ltd. for the fiscal year 2024, illustrating their financial performance.
| Metric | Zebra Technologies Corporation | AudioCodes Ltd. |
|---|---|---|
| Market Cap | 13.2B USD | 257M USD |
| Revenue | 4.98B USD | 242M USD |
| EBITDA | 937M USD | 21M USD |
| EBIT | 765M USD | 17.2M USD |
| Net Income | 528M USD | 15.3M USD |
| EPS | 10.25 USD | 0.51 USD |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Zebra Technologies Corporation
Zebra Technologies showed an overall upward trend in revenue, growing from $4.45B in 2020 to $4.98B in 2024, with net income rising from $504M to $528M. Margins remained mostly favorable, despite a slight decline in net margin over the period. The latest year saw solid revenue growth at 8.66%, strong EBIT expansion of 30.77%, and a significant net margin improvement, reflecting operational strength.
AudioCodes Ltd.
AudioCodes experienced modest revenue growth overall, reaching $242M in 2024 from $221M in 2020, but with a slight decline of 0.9% in the last year. Net income decreased notably over the period, dropping from $27M to $15M, with margins mixed: gross margin remained strong at 65.31%, but EBIT margin was neutral at 7.1%. The recent year showed improved EBIT and net margin growth, suggesting operational gains despite revenue headwinds.
Which one has the stronger fundamentals?
Zebra Technologies exhibits stronger fundamentals through consistent revenue growth, favorable margin profiles, and positive net income trajectory. Its substantial EBIT and EPS gains in 2024 underline operational efficiency. AudioCodes, while maintaining high gross margins and improving recent profitability metrics, faces challenges with net income decline and weaker margin growth over the period. Overall, Zebra’s financials present a more robust and stable income statement performance.
Financial Ratios Comparison
The table below presents the latest available financial ratios for Zebra Technologies Corporation (ZBRA) and AudioCodes Ltd. (AUDC) for the fiscal year 2024, facilitating a factual comparison of their financial performance and position.
| Ratios | Zebra Technologies Corporation (ZBRA) | AudioCodes Ltd. (AUDC) |
|---|---|---|
| ROE | 14.7% | 8.0% |
| ROIC | 9.7% | 6.5% |
| P/E | 37.7 | 19.2 |
| P/B | 5.55 | 1.53 |
| Current Ratio | 1.43 | 2.09 |
| Quick Ratio | 1.03 | 1.69 |
| D/E | 0.66 | 0.19 |
| Debt-to-Assets | 29.6% | 10.9% |
| Interest Coverage | 5.75 | 58.1 |
| Asset Turnover | 0.63 | 0.72 |
| Fixed Asset Turnover | 10.55 | 4.05 |
| Payout Ratio | 0% | 71.2% |
| Dividend Yield | 0% | 3.7% |
Interpretation of the Ratios
Zebra Technologies Corporation
Zebra Technologies shows a mix of ratio strengths and weaknesses. Its net margin of 10.6% is favorable, but high PE (37.67) and PB (5.55) ratios are unfavorable, indicating potentially overvalued stock. The company has a neutral return on equity (14.72%) and return on invested capital (9.67%), with a slightly favorable global ratio outlook. Zebra does not pay dividends, suggesting a reinvestment focus or prioritization of growth.
AudioCodes Ltd.
AudioCodes exhibits several favorable ratios including a strong current ratio (2.09), low debt-to-equity (0.19), and high interest coverage (58.08). However, returns on equity (7.98%) are unfavorable, and net margin (6.32%) remains neutral. Its PE (19.21) and PB (1.53) indicate reasonable valuation. AudioCodes pays dividends with a 3.7% yield, reflecting shareholder returns supported by solid free cash flow.
Which one has the best ratios?
AudioCodes stands out with a higher proportion of favorable ratios (50%) and a stronger dividend yield compared to Zebra. Zebra’s valuation metrics and returns present more caution despite a slightly favorable overall rating. Both companies show a slightly favorable global posture, but AudioCodes’ balance sheet strength and dividend policy provide a more robust profile in terms of ratios.
Strategic Positioning
This section compares the strategic positioning of Zebra Technologies Corporation (ZBRA) and AudioCodes Ltd. (AUDC) regarding market position, key segments, and exposure to technological disruption:
ZBRA
- Large market cap of $13.2B in communication equipment, facing competition in enterprise asset intelligence.
- Operates two main segments: Asset Intelligence & Tracking ($1.65B) and Enterprise Visibility & Mobility ($3.33B).
- Exposure through enterprise asset intelligence and RFID technologies in logistics and healthcare sectors.
AUDC
- Smaller market cap of $257M with moderate competition in communication software and hardware.
- Focuses on unified communications, contact centers, VoiceAI, and service provider business.
- Exposure through advanced communications software and VoIP network routing solutions.
ZBRA vs AUDC Positioning
ZBRA demonstrates a diversified approach with two major segments addressing asset tracking and enterprise mobility, while AUDC concentrates on communication software and related services. ZBRA’s larger scale contrasts with AUDC’s focused product and service offerings, impacting operational scope and market reach.
Which has the best competitive advantage?
Both companies show very unfavorable MOAT evaluations with declining ROIC trends and are shedding value. Neither currently demonstrates a sustainable competitive advantage based on capital efficiency and profitability metrics.
Stock Comparison
The stock price movements of Zebra Technologies Corporation and AudioCodes Ltd. over the past year reveal distinct bearish trends, with Zebra showing moderate decline amid accelerating volatility, while AudioCodes experiences a sharper drop with lower price fluctuations.
Trend Analysis
Zebra Technologies Corporation’s stock declined by 4.93% over the past year, indicating a bearish trend with accelerating downward momentum and high volatility, highlighted by a price range between 223.49 and 414.61.
AudioCodes Ltd. faced a more pronounced bearish trend, dropping 32.36% with accelerating decline and very low volatility, trading between 8.12 and 13.79, reflecting steadier but significant losses.
Comparatively, Zebra Technologies outperformed AudioCodes in market performance, delivering a smaller percentage loss despite higher volatility and accelerating bearish pressure.
Target Prices
Analysts present a clear target price consensus for Zebra Technologies Corporation and AudioCodes Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Zebra Technologies Corporation | 368 | 291 | 329.5 |
| AudioCodes Ltd. | 24 | 14 | 19 |
The target consensus for Zebra Technologies at 329.5 USD suggests significant upside from the current price of 261.44 USD. AudioCodes shows a consensus target of 19 USD, indicating strong potential growth compared to its current price near 8.82 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Zebra Technologies Corporation and AudioCodes Ltd.:
Rating Comparison
ZBRA Rating
- Rating: B, considered Very Favorable
- Discounted Cash Flow Score: Moderate at 3
- ROE Score: Favorable at 4
- ROA Score: Favorable at 4
- Debt To Equity Score: Very Unfavorable at 1
- Overall Score: Moderate at 3
AUDC Rating
- Rating: A-, considered Very Favorable
- Discounted Cash Flow Score: Favorable at 4
- ROE Score: Moderate at 3
- ROA Score: Moderate at 3
- Debt To Equity Score: Moderate at 3
- Overall Score: Favorable at 4
Which one is the best rated?
Based strictly on the provided data, AudioCodes holds higher overall and discounted cash flow scores, indicating a more favorable rating compared to Zebra. Zebra scores better on ROE and ROA but has a much weaker debt-to-equity score.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
ZBRA Scores
- Altman Z-Score: 3.86, in the safe zone, indicating low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
AUDC Scores
- Altman Z-Score: 2.19, in the grey zone, indicating moderate bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
Which company has the best scores?
Zebra Technologies (ZBRA) has a higher Altman Z-Score in the safe zone, suggesting better financial stability than AudioCodes (AUDC), which is in the grey zone. Both companies share an identical strong Piotroski Score of 7.
Grades Comparison
The following is a comparison of recent grades issued by reputable grading companies for Zebra Technologies Corporation and AudioCodes Ltd.:
Zebra Technologies Corporation Grades
This table summarizes recent analyst grades from major financial institutions for Zebra Technologies Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2026-01-12 |
| Truist Securities | Maintain | Hold | 2025-12-18 |
| Truist Securities | Maintain | Hold | 2025-10-29 |
| Barclays | Maintain | Overweight | 2025-10-29 |
| Citigroup | Maintain | Neutral | 2025-10-29 |
| Citigroup | Maintain | Neutral | 2025-10-09 |
| Truist Securities | Maintain | Hold | 2025-10-08 |
| Morgan Stanley | Maintain | Equal Weight | 2025-08-06 |
| Needham | Maintain | Buy | 2025-08-06 |
| Truist Securities | Maintain | Hold | 2025-08-06 |
Zebra Technologies mostly received stable grades with an overall positive tilt, including multiple “Overweight” and “Buy” ratings, indicating moderate confidence from analysts.
AudioCodes Ltd. Grades
This table summarizes recent analyst grades from reputable firms for AudioCodes Ltd.
| 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 |
AudioCodes exhibits a split analyst opinion with consistent “Buy” ratings from Needham contrasted by repeated “Underweight” ratings from Barclays, showing mixed confidence among analysts.
Which company has the best grades?
Zebra Technologies has received more consistently favorable grades, including multiple “Overweight” and “Buy” ratings, reflecting stronger analyst confidence than AudioCodes, which has mixed recommendations. This difference could influence investor perception of stability and upside potential.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for Zebra Technologies Corporation (ZBRA) and AudioCodes Ltd. (AUDC) based on the latest financial and operational data.
| Criterion | Zebra Technologies Corporation (ZBRA) | AudioCodes Ltd. (AUDC) |
|---|---|---|
| Diversification | Diversified across Asset Intelligence Tracking and Enterprise Visibility Mobility, with revenues of $1.65B and $3.33B respectively in 2024 | Concentrated in Products and Services, roughly balanced at $112M and $130M in 2024 |
| Profitability | Moderate profitability: Net margin 10.6%, ROIC 9.67% (slightly below WACC at 10.66%), declining ROIC trend, value destroying | Lower profitability: Net margin 6.32%, ROIC 6.51% vs WACC 8.04%, declining ROIC trend, value destroying |
| Innovation | Strong focus on technology-driven asset tracking and mobility solutions, but ROIC trend suggests challenges in value creation | Innovation centered on networking technologies, solid R&D but profitability under pressure |
| Global presence | Large global footprint with significant enterprise and asset management solutions worldwide | More niche global presence focused on network technology markets |
| Market Share | Established market leader in enterprise visibility and asset tracking segments | Smaller player with focused solutions in networking and communications |
Key takeaways: Zebra Technologies shows stronger revenue scale and diversification but struggles with declining profitability and value destruction. AudioCodes operates with a leaner portfolio and better liquidity ratios but faces challenges in profitability and sustaining long-term value. Both require cautious evaluation due to unfavorable economic moats and declining ROIC trends.
Risk Analysis
Below is a comparison of key risks for Zebra Technologies Corporation (ZBRA) and AudioCodes Ltd. (AUDC) as of 2024.
| Metric | Zebra Technologies Corporation (ZBRA) | AudioCodes Ltd. (AUDC) |
|---|---|---|
| Market Risk | High beta (1.68) indicates higher volatility and sensitivity to market swings. | Moderate beta (1.05), lower volatility compared to ZBRA. |
| Debt level | Moderate debt-to-equity ratio (~0.66), but debt coverage is adequate. | Low debt-to-equity (~0.19), strong interest coverage, low financial risk. |
| Regulatory Risk | Operates globally in technology and healthcare sectors, exposed to evolving data protection regulations. | Operates in telecom and communications, subject to international telecom regulations and export controls. |
| Operational Risk | Complex supply chain for hardware and software products, risks in manufacturing and service delivery. | Focus on software and managed services reduces physical operational risks but depends on integration with Microsoft Teams and other platforms. |
| Environmental Risk | Moderate, with potential risks from manufacturing and logistics; no significant environmental controversies reported. | Low environmental footprint due to software-centric business model. |
| Geopolitical Risk | US-based but global operations; potential exposure to trade tensions and supply chain disruptions. | Israeli company with international exposure; geopolitical tensions in the region could impact operations. |
The most impactful and likely risks for Zebra Technologies include market volatility due to its high beta and operational risks tied to manufacturing complexity. For AudioCodes, geopolitical risk is more pronounced due to its regional base, though its low debt and favorable liquidity mitigate financial risks. Both companies maintain strong financial health but face different external risk profiles in 2026.
Which Stock to Choose?
Zebra Technologies Corporation (ZBRA) has shown favorable income growth with an 8.66% revenue increase in 2024 and strong profitability metrics, including a 10.6% net margin. Its financial ratios are slightly favorable overall, with a strong quick ratio and interest coverage, though valuation multiples appear high. The company carries moderate debt, and its rating is very favorable with a B score.
AudioCodes Ltd. (AUDC) presents mixed income results, with a slight revenue decline in 2024 but favorable net margin and interest expense ratios. Its financial ratios are also slightly favorable, marked by low debt levels and strong liquidity. Despite a very unfavorable value creation rating, AUDC holds a very favorable A- rating with moderate overall scores.
For investors, Zebra’s higher profitability and stable income growth might appeal to those seeking quality and moderate growth, while AudioCodes’ strong liquidity and lower debt could be more attractive for risk-averse investors prioritizing financial stability. Both companies have very unfavorable MOAT ratings, indicating value destruction, which could signal caution.
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 Zebra Technologies Corporation and AudioCodes Ltd. to enhance your investment decisions:
