Ribbon Communications (NASDAQ:RBBN) & ADVA Optical (OTCMKTS:ADVOF) Head-To-Head Analysis

ADVA Optical (OTCMKTS:ADVOF) and Ribbon Communications (NASDAQ:RBBN) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Institutional and Insider Ownership

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

Volatility and Risk

ADVA Optical has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.

Valuation and Earnings

This table compares ADVA Optical and Ribbon Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADVA Optical	$922.72 million	N/A	-$450.87 million	N/A	N/A
Ribbon Communications	$833.88 million	0.84	-$54.24 million	($0.29)	-13.62

Ribbon Communications has lower revenue, but higher earnings than ADVA Optical.

Analyst Recommendations

This is a summary of recent ratings and price targets for ADVA Optical and Ribbon Communications, as provided by MarketBeat.

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

Ribbon Communications has a consensus price target of $5.88, suggesting a potential upside of 48.73%. Given Ribbon Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Ribbon Communications is more favorable than ADVA Optical.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ADVA Optical	N/A	N/A	N/A
Ribbon Communications	-6.00%	6.76%	2.37%

Summary

Ribbon Communications beats ADVA Optical on 9 of the 11 factors compared between the two stocks.

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.

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.