Head-To-Head Comparison: ADTRAN (ADTN) vs. Its Rivals

ADTRAN (NASDAQ:ADTN) is one of 251 publicly-traded companies in the “Technology Services” industry, but how does it compare to its peers? We will compare ADTRAN to related companies based on the strength of its analyst recommendations, dividends, valuation, profitability, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for ADTRAN and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADTRAN	1	2	3	0	2.33
ADTRAN Competitors	1800	2875	5502	348	2.42

ADTRAN presently has a consensus price target of $15.33, indicating a potential upside of 19.05%. As a group, “Technology Services” companies have a potential upside of 36.70%. Given ADTRAN’s peers stronger consensus rating and higher possible upside, analysts plainly believe ADTRAN has less favorable growth aspects than its peers.

Insider & Institutional Ownership

80.6% of ADTRAN shares are held by institutional investors. Comparatively, 37.3% of shares of all “Technology Services” companies are held by institutional investors. 1.5% of ADTRAN shares are held by company insiders. Comparatively, 18.7% of shares of all “Technology Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares ADTRAN and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ADTRAN	$1.08 billion	-$45.66 million	-25.25
ADTRAN Competitors	$1.31 billion	$38.59 million	2.22

ADTRAN’s peers have higher revenue and earnings than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares ADTRAN and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADTRAN	-4.15%	4.23%	0.52%
ADTRAN Competitors	-356.35%	-38.78%	-12.61%

Volatility and Risk

ADTRAN has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, ADTRAN’s peers have a beta of -14.12, indicating that their average stock price is 1,512% less volatile than the S&P 500.

Summary

ADTRAN peers beat ADTRAN on 8 of the 13 factors compared.

About ADTRAN

ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.