Analyzing Veea (NASDAQ:VEEA) and Ribbon Communications (NASDAQ:RBBN)

Veea (NASDAQ:VEEA) and Ribbon Communications (NASDAQ:RBBN) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veea	N/A	N/A	-20.86%
Ribbon Communications	-6.50%	7.36%	2.73%

Earnings & Valuation

This table compares Veea and Ribbon Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veea	$141,760.00	420.41	-$30,000.00	N/A	N/A
Ribbon Communications	$833.88 million	0.75	-$54.24 million	($0.32)	-11.05

Veea has higher earnings, but lower revenue than Ribbon Communications.

Risk and Volatility

Veea has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Insider and Institutional Ownership

25.9% of Veea shares are owned by institutional investors. Comparatively, 70.9% of Ribbon Communications shares are owned by institutional investors. 71.0% of Veea shares are owned by company insiders. Comparatively, 2.1% of Ribbon Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Veea and Ribbon Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veea	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 69.73%. Given Ribbon Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Ribbon Communications is more favorable than Veea.

Summary

Ribbon Communications beats Veea on 8 of the 12 factors compared between the two stocks.

About Veea

Veea Inc. provides computing, multiaccess multiprotocol communications, edge storage, and cybersecurity solutions. The company offers multiaccess edge computing (MEC) platform that redefines connectivity and computing at the edge by integrating functions of servers, network attached storage (NAS), routers, firewalls, Wi-Fi Access Points, IoT gateways, and 4G and 5G connections; and Veea Edge Platform enables direct connections from the optical fiber, cellular, and satellite networks. It also provides VeeaHub STAX, an edge computing product integrated with wireless access, including Wi-Fi 6; VeeaHub that offers connectivity options for pro indoor smart edge applications; and VeeaHub Outdoor that integrates with wireless connectivity for smart edge applications in outdoor and industrial environments. The company also offers TROLLEE, a smart shopping cart platform; the VeeaHub toolkit; and Veea AdEdge, an advertising platform. Veea Inc. was founded in 2014 and is headquartered in New York, New York.

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.