Wi-LAN (OTCMKTS:QTRHF – Get Free Report) and ADTRAN (NASDAQ:ADTN – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Valuation & Earnings
This table compares Wi-LAN and ADTRAN”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wi-LAN | $153.30 million | 0.61 | -$11.02 million | ($0.17) | -4.72 |
| ADTRAN | $922.72 million | 0.80 | -$459.89 million | ($1.31) | -7.08 |
Risk and Volatility
Wi-LAN has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, ADTRAN has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Wi-LAN and ADTRAN, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wi-LAN | 0 | 0 | 1 | 0 | 3.00 |
| ADTRAN | 0 | 1 | 4 | 0 | 2.80 |
ADTRAN has a consensus target price of $12.00, indicating a potential upside of 29.31%. Given ADTRAN’s higher possible upside, analysts plainly believe ADTRAN is more favorable than Wi-LAN.
Institutional and Insider Ownership
80.6% of ADTRAN shares are owned by institutional investors. 1.5% of ADTRAN shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Wi-LAN and ADTRAN’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wi-LAN | -12.38% | -14.68% | -8.22% |
| ADTRAN | -11.02% | -10.09% | -1.35% |
Summary
ADTRAN beats Wi-LAN on 10 of the 14 factors compared between the two stocks.
About Wi-LAN
Quarterhill Inc., together with its subsidiaries, operates in intelligent transportation system business in Canada and internationally. The company offers riteSuite, which offers mobility solutions, such as all-electronic tolling, dynamic pricing, agency interoperability, hosted mobility solutions, and machine learning; back-office solutions, which offers account management, customer service, violation processing, and technical services operations; roadside solutions, which offers onsite and remote maintenance and field operations services, including tolling facility support, lane equipment control, and cash management services; and international road dynamics products and services, which offers automated truck weigh stations, toll road systems and equipment, red light and speed enforcement systems, and traffic management and safety systems. It also provides VectorSense, a tire sensor suite; Vehicle Information-In-Motion traffic intelligence system, an integrated traffic control system; permanent Weigh-InMotion systems; portable slow speed Weigh-In-Motion systems; portable wheel load scales; traffic data collection products, vehicle and axle detection equipment, and automated vehicle identification services and equipment; and other hardware and software products and offerings. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.
About ADTRAN
ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.
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