ADTRAN (ADTN) versus Its Peers Financial Survey

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

Analyst Ratings

This is a breakdown of current ratings for ADTRAN and its peers, 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	1826	2887	5528	352	2.42

ADTRAN currently has a consensus price target of $16.67, indicating a potential upside of 10.27%. As a group, “Technology Services” companies have a potential upside of 27.72%. Given ADTRAN’s peers stronger consensus rating and higher probable upside, analysts clearly believe ADTRAN has less favorable growth aspects than its peers.

Institutional and 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. 2.2% 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

ADTRAN has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, ADTRAN’s peers have a beta of -14.12, meaning that their average stock price is 1,512% less volatile than the S&P 500.

Profitability

This table compares ADTRAN and its peers’ 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	-359.56%	-42.54%	-13.45%

Valuation & Earnings

This table compares ADTRAN and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ADTRAN	$1.08 billion	-$45.66 million	-29.64
ADTRAN Competitors	$1.31 billion	$39.02 million	2.06

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

Summary

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

ADTRAN Company Profile

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.