Head-To-Head Survey: Ribbon Communications (NASDAQ:RBBN) vs. WeRide (NASDAQ:WRD)

WeRide (NASDAQ:WRD) and Ribbon Communications (NASDAQ:RBBN) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Valuation & Earnings

This table compares WeRide and Ribbon Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WeRide	$361.13 million	7.34	-$275.41 million	N/A	N/A
Ribbon Communications	$833.88 million	0.73	-$54.24 million	($0.32)	-10.78

Ribbon Communications has higher revenue and earnings than WeRide.

Profitability

This table compares WeRide and Ribbon Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WeRide	N/A	N/A	N/A
Ribbon Communications	-6.50%	7.36%	2.73%

Analyst Recommendations

This is a breakdown of current ratings and price targets for WeRide and Ribbon Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WeRide	0	0	0	0	0.00
Ribbon Communications	0	0	4	0	3.00

Ribbon Communications has a consensus target price of $6.00, suggesting a potential upside of 73.91%. Given Ribbon Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Ribbon Communications is more favorable than WeRide.

Insider and Institutional Ownership

70.9% of Ribbon Communications shares are held by institutional investors. 2.7% of WeRide shares are held by insiders. Comparatively, 2.1% of Ribbon Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Ribbon Communications beats WeRide on 8 of the 11 factors compared between the two stocks.

About WeRide

WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.

About Ribbon Communications

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications, and unified communications and collaboration. It also offers session border controllers; and network transformation products, such as signaling products, call controllers, media gateways, and application servers. This segment serves private, public, or hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks. The IP Optical Networks segment provides hardware and software products and solutions for IP networking, switching, routing, and optical transport for technologies, such as 5G, distributed cloud computing, and corresponding applications. It also offers multiple solutions, including 5G-native solutions for mobile-backhaul, metro and edge aggregation, core networking, data center interconnect, multi-service access, and transport solutions for wholesale carriers. This segment serves utilities, government, defense, finance, transportation, and education and research industries, as well as service providers and enterprises. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Plano, Texas.