Ribbon Communications (NASDAQ: RBBN) is one of 66 publicly-traded companies in the “Communications & Networking” industry, but how does it weigh in compared to its rivals? We will compare Ribbon Communications to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and target prices for Ribbon Communications and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ribbon Communications 1 1 4 0 2.50
Ribbon Communications Competitors 396 2561 4098 165 2.56

Ribbon Communications presently has a consensus target price of $7.05, indicating a potential downside of 6.00%. As a group, “Communications & Networking” companies have a potential upside of 16.78%. Given Ribbon Communications’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Ribbon Communications has less favorable growth aspects than its rivals.

Profitability

This table compares Ribbon Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ribbon Communications -8.82% -1.87% -1.32%
Ribbon Communications Competitors -3.91% -9.20% -0.95%

Institutional and Insider Ownership

32.3% of Ribbon Communications shares are held by institutional investors. Comparatively, 62.1% of shares of all “Communications & Networking” companies are held by institutional investors. 7.7% of Ribbon Communications shares are held by insiders. Comparatively, 12.4% of shares of all “Communications & Networking” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Ribbon Communications and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ribbon Communications $252.59 million -$13.93 million -16.67
Ribbon Communications Competitors $3.30 billion $346.31 million -137.71

Ribbon Communications’ rivals have higher revenue and earnings than Ribbon Communications. Ribbon Communications is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Ribbon Communications has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500. Comparatively, Ribbon Communications’ rivals have a beta of 1.16, indicating that their average stock price is 16% more volatile than the S&P 500.

Summary

Ribbon Communications rivals beat Ribbon Communications on 9 of the 12 factors compared.

About Ribbon Communications

Sonus Networks, Inc., formerly Solstice Sapphire Investments, Inc., is a provider of networked solutions for communications service providers and enterprises to help them secure and unify their real-time communications infrastructures. The Company helps communications service providers and enterprises hold the session initiation protocol (SIP) and fourth generation (4G)/long term evolution (LTE)-based solutions, including voice over Internet protocol (VoIP), voice over wireless fidelity (VoWiFi), video and unified communications (UC) by securing and enabling Internet Protocol (IP) networks. Its products include session border controllers (SBCs), diameter signaling controllers (DSCs) and VoWiFi solutions. Sonus Products include Sonus GSX9000 Open Services Switch, Sonus T7000 Intelligent Switching System, Sonus Diameter Signaling Controllers, Sonus Signal Transfer Points, Sonus PSX Policy & Routing Server, Sonus WebRTC Services Solution, and Sonus Network Management Solutions.

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