RDCM vs ADTN

For growth investors, ADTRAN Holdings, Inc.

(ADTN) is the stronger pick with 17. 5% revenue growth year-over-year, versus 17. 2% for RADCOM Ltd. (RDCM). RADCOM Ltd. (RDCM) offers the better valuation at 22. 3x trailing P/E (13. 5x forward), making it the more compelling value choice. Analysts rate RADCOM Ltd. (RDCM) a "Buy" — based on 3 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, RADCOM Ltd.

is actually cheaper at 13. 5x.

Over the past 5 years, RADCOM Ltd.

(RDCM) delivered a total return of +67. 0%, compared to -22. 5% for ADTRAN Holdings, Inc. (ADTN). Over 10 years, the gap is even starker: RDCM returned +21. 4% versus ADTN's -8. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), RADCOM Ltd.

(RDCM) is the lower-risk stock at 0. 78β versus ADTRAN Holdings, Inc. 's 1. 91β — meaning ADTN is approximately 144% more volatile than RDCM relative to the S&P 500. On balance sheet safety, RADCOM Ltd. (RDCM) carries a lower debt/equity ratio of 3% versus 47% for ADTRAN Holdings, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), ADTRAN Holdings, Inc.

(ADTN) is pulling ahead at 17. 5% versus 17. 2% for RADCOM Ltd. (RDCM). On earnings-per-share growth, the picture is similar: ADTRAN Holdings, Inc. grew EPS 89. 9% year-over-year, compared to 65. 1% for RADCOM Ltd.. Over a 3-year CAGR, RDCM leads at 15. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

RADCOM Ltd.

(RDCM) is the more profitable company, earning 16. 8% net margin versus -4. 2% for ADTRAN Holdings, Inc. — meaning it keeps 16. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RDCM leads at 11. 6% versus -1. 4% for ADTN. At the gross margin level — before operating expenses — RDCM leads at 76. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, RADCOM Ltd.

(RDCM) trades at 13. 5x forward P/E versus 29. 7x for ADTRAN Holdings, Inc. — 16. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADTN: 23. 7% to $18. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, RADCOM Ltd.

(RDCM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 78)). ADTRAN Holdings, Inc. (ADTN) carries a higher beta of 1. 91 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (RDCM: +21. 4%, ADTN: -8. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (RDCM (Communication Services) and ADTN (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.