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 similar businesses based on the strength of its profitability, risk, institutional ownership, analyst recommendations, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ribbon Communications and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ribbon Communications 1 1 4 0 2.50
Ribbon Communications Competitors 402 2583 4131 168 2.56

Ribbon Communications presently has a consensus price target of $7.05, indicating a potential downside of 10.98%. As a group, “Communications & Networking” companies have a potential upside of 13.14%. Given Ribbon Communications’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Ribbon Communications has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

32.3% of Ribbon Communications shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Communications & Networking” companies are owned by institutional investors. 7.7% of Ribbon Communications shares are owned by insiders. Comparatively, 13.2% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Ribbon Communications has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500. Comparatively, Ribbon Communications’ rivals have a beta of 1.17, indicating that their average share price is 17% more volatile than the S&P 500.

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 -3.47% -9.93% -1.24%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Ribbon Communications $252.59 million -$13.93 million -18.00
Ribbon Communications Competitors $3.31 billion $373.33 million -171.21

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.

Summary

Ribbon Communications rivals beat Ribbon Communications on 9 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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