Ruckus Wireless (NYSE: RKUS) and Sprint Corporation (NYSE:S) are both telecommunications services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ruckus Wireless and Sprint Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruckus Wireless 0 0 0 0 N/A
Sprint Corporation 5 11 3 0 1.89

Sprint Corporation has a consensus target price of $10.35, indicating a potential upside of 43.90%. Given Sprint Corporation’s higher probable upside, analysts clearly believe Sprint Corporation is more favorable than Ruckus Wireless.

Earnings & Valuation

This table compares Ruckus Wireless and Sprint Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ruckus Wireless N/A N/A N/A N/A N/A
Sprint Corporation $33.49 billion 0.86 $10.80 billion ($0.18) -39.94

Sprint Corporation has higher revenue and earnings than Ruckus Wireless.

Profitability

This table compares Ruckus Wireless and Sprint Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruckus Wireless -0.92% -1.17% -0.88%
Sprint Corporation -2.08% -3.66% -0.84%

Institutional and Insider Ownership

14.0% of Sprint Corporation shares are owned by institutional investors. 0.2% of Sprint Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Sprint Corporation beats Ruckus Wireless on 6 of the 8 factors compared between the two stocks.

About Ruckus Wireless

Ruckus Wireless, Inc. is a supplier of advanced (Wi-Fi) solutions. The Company’s solutions, which it call Smart Wi-Fi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with wireless traffic demands. It operates through selling controllers and access points along with related software and services segment. The Company markets and sells its products and technology through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality, such as enhanced reliability, extended range and scalability. Its products include controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions, including reporting and analytics, and Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices.

About Sprint Corporation

Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.

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