Critical Survey: ADTRAN (ADTN) and Its Rivals

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

Profitability

This table compares ADTRAN and its rivals’ 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	-382.60%	-610.58%	-13.02%

Earnings and Valuation

This table compares ADTRAN and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ADTRAN	$1.08 billion	-$45.66 million	-24.67
ADTRAN Competitors	$1.31 billion	$38.74 million	2.57

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADTRAN	1	2	3	0	2.33
ADTRAN Competitors	1793	2866	5493	347	2.42

ADTRAN presently has a consensus target price of $15.33, suggesting a potential upside of 21.89%. As a group, “Technology Services” companies have a potential upside of 39.90%. Given ADTRAN’s rivals stronger consensus rating and higher probable upside, analysts plainly believe ADTRAN has less favorable growth aspects than its rivals.

Risk & Volatility

ADTRAN has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, ADTRAN’s rivals have a beta of -15.53, meaning that their average stock price is 1,653% less volatile than the S&P 500.

Institutional and Insider Ownership

80.6% of ADTRAN shares are held by institutional investors. Comparatively, 37.7% of shares of all “Technology Services” companies are held by institutional investors. 1.5% of ADTRAN shares are held by company insiders. Comparatively, 18.3% of shares of all “Technology Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

ADTRAN rivals 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.