Ribbon Communications (NASDAQ: RBBN) is one of 64 public companies in the “Communications & Networking” industry, but how does it compare to its peers? We will compare Ribbon Communications to similar businesses based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.

Volatility & Risk

Ribbon Communications has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Ribbon Communications’ peers have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ribbon Communications and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ribbon Communications $252.59 million -$13.93 million -17.49
Ribbon Communications Competitors $3.31 billion $373.33 million -128.06

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

Profitability

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 -8.82% -1.87% -1.32%
Ribbon Communications Competitors -0.91% -8.40% 0.41%

Analyst Ratings

This is a summary of current ratings and recommmendations for Ribbon Communications and its peers, as reported 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 377 2396 4003 161 2.57

Ribbon Communications currently has a consensus price target of $7.05, indicating a potential downside of 10.42%. As a group, “Communications & Networking” companies have a potential upside of 16.40%. Given Ribbon Communications’ peers stronger consensus rating and higher probable upside, analysts clearly believe Ribbon Communications has less favorable growth aspects than its peers.

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, 12.4% of shares of all “Communications & Networking” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ribbon Communications peers beat Ribbon Communications on 9 of the 12 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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