Analyzing Ribbon Communications (NASDAQ:RBBN) & Vistance Networks (NASDAQ:VISN)

Vistance Networks (NASDAQ:VISN) and Ribbon Communications (NASDAQ:RBBN) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Vistance Networks and Ribbon Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistance Networks	0	4	0	0	2.00
Ribbon Communications	1	0	5	0	2.67

Vistance Networks currently has a consensus price target of $19.33, indicating a potential upside of 219.03%. Ribbon Communications has a consensus price target of $3.52, indicating a potential upside of 73.23%. Given Vistance Networks’ higher possible upside, equities analysts clearly believe Vistance Networks is more favorable than Ribbon Communications.

Volatility & Risk

Vistance Networks has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares Vistance Networks and Ribbon Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistance Networks	247.69%	32.28%	4.61%
Ribbon Communications	1.96%	19.91%	6.98%

Insider and Institutional Ownership

88.0% of Vistance Networks shares are held by institutional investors. Comparatively, 70.9% of Ribbon Communications shares are held by institutional investors. 3.5% of Vistance Networks shares are held by company insiders. Comparatively, 4.0% of Ribbon Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Vistance Networks and Ribbon Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistance Networks	$1.93 billion	0.72	$2.28 billion	$30.80	0.20
Ribbon Communications	$844.56 million	0.43	$39.64 million	$0.08	25.37

Vistance Networks has higher revenue and earnings than Ribbon Communications. Vistance Networks is trading at a lower price-to-earnings ratio than Ribbon Communications, indicating that it is currently the more affordable of the two stocks.

Summary

Vistance Networks beats Ribbon Communications on 9 of the 14 factors compared between the two stocks.

About Vistance Networks

CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.

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.