Ribbon Communications (NASDAQ: RBBN) and Aerohive Networks (NYSE:HIVE) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
This table compares Ribbon Communications and Aerohive Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Ribbon Communications and Aerohive Networks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ribbon Communications||$329.94 million||1.63||-$35.25 million||($0.58)||-9.10|
|Aerohive Networks||$152.90 million||1.61||-$22.92 million||($0.42)||-10.79|
Aerohive Networks has lower revenue, but higher earnings than Ribbon Communications. Aerohive Networks is trading at a lower price-to-earnings ratio than Ribbon Communications, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Ribbon Communications and Aerohive Networks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ribbon Communications currently has a consensus target price of $7.05, indicating a potential upside of 33.52%. Aerohive Networks has a consensus target price of $6.13, indicating a potential upside of 35.21%. Given Aerohive Networks’ stronger consensus rating and higher probable upside, analysts plainly believe Aerohive Networks is more favorable than Ribbon Communications.
Volatility & Risk
Ribbon Communications has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Aerohive Networks has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Insider & Institutional Ownership
83.9% of Ribbon Communications shares are held by institutional investors. Comparatively, 46.8% of Aerohive Networks shares are held by institutional investors. 7.7% of Ribbon Communications shares are held by company insiders. Comparatively, 26.2% of Aerohive Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Ribbon Communications beats Aerohive Networks on 8 of the 13 factors compared between the two stocks.
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.
About Aerohive Networks
Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.
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