Contrasting ADTRAN (ADTN) & Its Rivals

ADTRAN (NASDAQ:ADTN) is one of 251 public companies in the “Technology Services” industry, but how does it contrast to its competitors? We will compare ADTRAN to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, dividends, earnings and risk.

Profitability

This table compares ADTRAN and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ADTRAN	-4.15%	4.23%	0.52%
ADTRAN Competitors	-356.36%	-38.77%	-12.62%

Institutional & Insider Ownership

80.6% of ADTRAN shares are held by institutional investors. Comparatively, 37.3% of shares of all “Technology Services” companies are held by institutional investors. 1.5% of ADTRAN shares are held by insiders. Comparatively, 18.7% of shares of all “Technology Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares ADTRAN and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ADTRAN	$1.08 billion	-$45.66 million	-24.96
ADTRAN Competitors	$1.36 billion	$38.93 million	2.50

ADTRAN’s competitors have higher revenue and earnings than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

ADTRAN has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, ADTRAN’s competitors have a beta of -14.09, indicating that their average share price is 1,509% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for ADTRAN and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADTRAN	1	2	3	0	2.33
ADTRAN Competitors	1795	2867	5496	347	2.42

ADTRAN presently has a consensus target price of $15.33, suggesting a potential upside of 20.45%. As a group, “Technology Services” companies have a potential upside of 36.50%. Given ADTRAN’s competitors stronger consensus rating and higher possible upside, analysts clearly believe ADTRAN has less favorable growth aspects than its competitors.

Summary

ADTRAN competitors beat ADTRAN on 8 of the 13 factors compared.

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.