Critical Survey: ADTRAN (NASDAQ:ADTN) versus Vistance Networks (NASDAQ:VISN)

Vistance Networks (NASDAQ:VISN) and ADTRAN (NASDAQ:ADTN) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Risk & Volatility

Vistance Networks has a beta of 2.57, suggesting that its share price is 157% more volatile than the S&P 500. Comparatively, ADTRAN has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Vistance Networks and ADTRAN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistance Networks	0	5	0	0	2.00
ADTRAN	1	3	3	0	2.29

Vistance Networks currently has a consensus target price of $15.00, indicating a potential upside of 276.41%. ADTRAN has a consensus target price of $11.21, indicating a potential upside of 135.22%. Given Vistance Networks’ higher possible upside, equities research analysts clearly believe Vistance Networks is more favorable than ADTRAN.

Profitability

This table compares Vistance Networks and ADTRAN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistance Networks	504.02%	8.92%	3.52%
ADTRAN	-2.20%	17.76%	2.00%

Insider & Institutional Ownership

88.0% of Vistance Networks shares are held by institutional investors. Comparatively, 80.6% of ADTRAN shares are held by institutional investors. 3.5% of Vistance Networks shares are held by insiders. Comparatively, 2.2% of ADTRAN shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Vistance Networks and ADTRAN”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistance Networks	$1.97 billion	0.41	$2.28 billion	$34.95	0.11
ADTRAN	$1.14 billion	0.34	-$45.66 million	($0.26)	-18.33

Vistance Networks has higher revenue and earnings than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than Vistance Networks, indicating that it is currently the more affordable of the two stocks.

Summary

Vistance Networks beats ADTRAN on 11 of the 14 factors compared between the two stocks.

About Vistance Networks

Vistance Networks develops and supplies communications technology for satellite, space, terrestrial and wireless networks. Its offerings include satellite modems and ground-station equipment, radio-frequency systems, and troposcatter communications technology used to connect networks where conventional infrastructure may be limited. The company also provides public-safety communications solutions, including technology for emergency calling, call handling and location services. Its customers include government and defense organizations, satellite and telecommunications operators, and public-safety agencies.

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.