Ruckus Wireless (NYSE: RKUS) and Vodafone Group (NASDAQ:VOD) are both telecommunications services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
This table compares Ruckus Wireless and Vodafone Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
10.2% of Vodafone Group shares are held by institutional investors. 1.0% of Vodafone Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Vodafone Group pays an annual dividend of $1.15 per share and has a dividend yield of 3.6%. Ruckus Wireless does not pay a dividend. Vodafone Group pays out -302.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Ruckus Wireless and Vodafone Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vodafone Group||$52.29 billion||1.64||-$6.91 billion||($0.38)||-84.63|
Ruckus Wireless has higher earnings, but lower revenue than Vodafone Group. Vodafone Group is trading at a lower price-to-earnings ratio than Ruckus Wireless, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Ruckus Wireless and Vodafone Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vodafone Group has a consensus target price of $31.52, indicating a potential downside of 1.99%. Given Vodafone Group’s higher possible upside, analysts plainly believe Vodafone Group is more favorable than Ruckus Wireless.
Vodafone Group beats Ruckus Wireless on 11 of the 13 factors compared between the two stocks.
Ruckus Wireless Company Profile
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.
Vodafone Group Company Profile
Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.
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