Financial Comparison: Frontier Communications Parent (NASDAQ:FYBR) and Ribbon Communications (NASDAQ:RBBN)

Frontier Communications Parent (NASDAQ:FYBR) and Ribbon Communications (NASDAQ:RBBN) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Frontier Communications Parent	-6.47%	-7.73%	-1.87%
Ribbon Communications	-6.00%	6.76%	2.37%

Insider and Institutional Ownership

70.9% of Ribbon Communications shares are held by institutional investors. 1.6% of Frontier Communications Parent shares are held by company insiders. Comparatively, 1.7% of Ribbon Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Frontier Communications Parent and Ribbon Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontier Communications Parent	1	10	1	0	2.00
Ribbon Communications	0	0	4	0	3.00

Frontier Communications Parent currently has a consensus target price of $36.07, suggesting a potential downside of 0.30%. Ribbon Communications has a consensus target price of $5.88, suggesting a potential upside of 51.42%. Given Ribbon Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Ribbon Communications is more favorable than Frontier Communications Parent.

Earnings & Valuation

This table compares Frontier Communications Parent and Ribbon Communications”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontier Communications Parent	$5.94 billion	1.53	-$322.00 million	($1.55)	-23.34
Ribbon Communications	$833.88 million	0.82	-$54.24 million	($0.29)	-13.38

Ribbon Communications has lower revenue, but higher earnings than Frontier Communications Parent. Frontier Communications Parent is trading at a lower price-to-earnings ratio than Ribbon Communications, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Frontier Communications Parent has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Summary

Ribbon Communications beats Frontier Communications Parent on 12 of the 14 factors compared between the two stocks.

About Frontier Communications Parent

Frontier Communications Parent, Inc., together with its subsidiaries, provides communication and technology services in the United States. It offers broadband, video, voice, and other value-added services. The company also provides data and Internet, including broadband networking services; data-based voice over internet protocol, unified communications, long-distance, and voice messaging services; video services under the Frontier TV brand; access services; hardware and network solutions; and packages of services. It serves large enterprise customers, small and medium businesses, and wholesale customers. The company was formerly known as Frontier Communications Corporation and changed its name to Frontier Communications Parent, Inc. in April 2021. Frontier Communications Parent, Inc. was incorporated in 1935 and is headquartered in Dallas, Texas.

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.