Contrasting ADTRAN (ADTN) and Its Rivals

ADTRAN (NASDAQ:ADTN) is one of 110 public companies in the “Communications Equipment” industry, but how does it weigh in compared to its competitors? We will compare ADTRAN to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, dividends, risk and profitability.

Valuation and Earnings

This table compares ADTRAN and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ADTRAN	$1.14 billion	-$45.66 million	-18.69
ADTRAN Competitors	$5.63 billion	$292.54 million	-3.17

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

Dividends

ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 7.4%. ADTRAN pays out -138.5% of its earnings in the form of a dividend. As a group, “Communications Equipment” companies pay a dividend yield of 1.4% and pay out 43.8% of their earnings in the form of a dividend. ADTRAN is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

80.6% of ADTRAN shares are held by institutional investors. Comparatively, 44.4% of shares of all “Communications Equipment” companies are held by institutional investors. 2.2% of ADTRAN shares are held by company insiders. Comparatively, 18.4% of shares of all “Communications Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

ADTRAN has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, ADTRAN’s competitors have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for ADTRAN and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADTRAN	1	3	3	0	2.29
ADTRAN Competitors	1078	4039	7106	383	2.54

ADTRAN currently has a consensus price target of $11.21, indicating a potential upside of 130.62%. As a group, “Communications Equipment” companies have a potential upside of 42.32%. Given ADTRAN’s higher probable upside, equities analysts clearly believe ADTRAN is more favorable than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ADTRAN	-2.20%	17.76%	2.00%
ADTRAN Competitors	5.68%	-5.38%	3.11%

Summary

ADTRAN competitors beat ADTRAN on 9 of the 15 factors compared.

About ADTRAN

ADTRAN Holdings, Inc. is a global provider of networking and communications equipment, software, and services. Its products help communications service providers and businesses build and manage broadband and other communications networks. The company’s offerings include fiber-optic access systems, broadband access equipment, optical transport and Ethernet solutions, and cloud-managed Wi-Fi and network-management software. These products support connections between service providers’ networks and homes, businesses, and other locations.