Ribbon Communications (NASDAQ: RBBN) is one of 58 publicly-traded companies in the “Communications & Networking” industry, but how does it contrast to its peers? We will compare Ribbon Communications to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, dividends, valuation, earnings and risk.
Earnings and Valuation
This table compares Ribbon Communications and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Ribbon Communications||$252.59 million||-$13.93 million||-17.18|
|Ribbon Communications Competitors||$3.46 billion||$391.42 million||-156.38|
Volatility and Risk
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’ peers have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.
This table compares Ribbon Communications and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ribbon Communications Competitors||-1.62%||0.19%||0.57%|
Institutional and Insider Ownership
32.3% of Ribbon Communications shares are held by institutional investors. Comparatively, 62.2% of shares of all “Communications & Networking” companies are held by institutional investors. 7.7% of Ribbon Communications shares are held by company insiders. Comparatively, 11.9% of shares of all “Communications & Networking” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent recommendations and price targets for Ribbon Communications and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ribbon Communications Competitors||373||2308||3832||162||2.57|
Ribbon Communications currently has a consensus price target of $7.05, indicating a potential downside of 8.80%. As a group, “Communications & Networking” companies have a potential upside of 18.00%. Given Ribbon Communications’ peers stronger consensus rating and higher probable upside, analysts clearly believe Ribbon Communications has less favorable growth aspects than its peers.
Ribbon Communications peers beat Ribbon Communications on 10 of the 13 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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