Critical Analysis: Freenet (OTCMKTS:FRTAF) versus ADVA Optical (OTCMKTS:ADVOF)

Freenet (OTCMKTS:FRTAF) and ADVA Optical (OTCMKTS:ADVOF) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Freenet has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500. Comparatively, ADVA Optical has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Freenet and ADVA Optical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freenet	2	3	1	0	1.83
ADVA Optical	0	0	0	0	0.00

Earnings and Valuation

This table compares Freenet and ADVA Optical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freenet	$2.68 billion	1.50	$267.09 million	$2.12	15.99
ADVA Optical	$922.72 million	N/A	-$450.87 million	N/A	N/A

Freenet has higher revenue and earnings than ADVA Optical.

Profitability

This table compares Freenet and ADVA Optical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freenet	9.07%	18.50%	7.87%
ADVA Optical	N/A	N/A	N/A

Summary

Freenet beats ADVA Optical on 7 of the 8 factors compared between the two stocks.

About Freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.

About ADVA Optical

Adtran Networks SE engages in the development, manufacture, and sale optical and Ethernet-based networking solutions for telecommunications carriers and enterprises to deliver data, storage, voice, and video services worldwide. It offers open optical transport solutions, such as FSP 3000 open terminals, FSP 3000 open line systems, pluggables and subsystems, and optical access solutions; packet edge and aggregation products, including carrier Ethernet and programmable multilayer edge, metro aggregation, and edge computing products; disaggregated networking, such as packet optical terminals and ensemble activators. The company also provides network virtualization products comprising ensemble connectors, orchestrators, and harmony ecosystems, as well as operates ensemble virtualization director, a management platform for the creation and deployment of virtualized services; network infrastructure assurance products; timing and synchronization products; and automated network management products, such as ensemble optical, sync, fiber, and packet director, and ensemble controllers. In addition, it offers professional services to build, care, and enable the networks. Adtran Networks SE sells its products to telecommunications service providers, private companies, universities, and government agencies directly, as well as through a network of distribution partners. The company was formerly known as ADVA Optical Networking SE and changed its name to Adtran Networks SE in June 2023. The company was founded in 1994 and is headquartered in Munich, Germany. Adtran Networks SE operates as a subsidiary of ADTRAN Holdings, Inc.