Critical Contrast: ADTRAN (ADTN) vs. Tellabs (TLAB)

ADTRAN (NASDAQ: ADTN) and Tellabs (NASDAQ:TLAB) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.


ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Tellabs does not pay a dividend. ADTRAN pays out 72.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares ADTRAN and Tellabs’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ADTRAN $666.58 million 1.18 $23.84 million $0.50 32.50
Tellabs N/A N/A N/A ($0.27) N/A

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


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

Net Margins Return on Equity Return on Assets
ADTRAN 3.58% 7.95% 5.79%
Tellabs N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ADTRAN and Tellabs, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ADTRAN 0 3 4 0 2.57
Tellabs 0 0 0 0 N/A

ADTRAN currently has a consensus price target of $20.75, suggesting a potential upside of 27.69%.

Institutional and Insider Ownership

93.0% of ADTRAN shares are owned by institutional investors. 3.0% of ADTRAN shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.


ADTRAN beats Tellabs on 9 of the 10 factors compared between the two stocks.


ADTRAN, Inc. (ADTRAN) is a provider of networking and communications equipment. The Company’s solutions enable voice, data, video and Internet communications across a range of network infrastructures. It operates through two segments: Network Solutions and Services & Support. Network Solutions includes software and hardware products that enable CSPs and enterprise customers to realize a fully connected world. It provides a full-range of network implementation, maintenance and managed services. Its solutions include Access & Aggregation, Customer Devices, and Traditional & Other Products. Its Access & Aggregation solutions are used by communications service providers (CSPs) to connect their network infrastructure to their subscribers. The portfolio of ADTRAN solutions within Access & Aggregation category includes a range of modular or fixed physical form factors designed to deliver the technology and economic fit based on the target subscriber density and environmental conditions.

About Tellabs

Tellabs, Inc. is engaged in designing and marketing equipment and services to communications-services providers worldwide. The company operates in four segments: optical, data, access and services. Its products and services, in combination with its Tellabs 8000 Intelligent Network Manager, enables its customers to deliver wireless and wireline voice, data and video services to business and residential customers. It sells its products domestically and internationally through its field sales force and distributors/partners. In December 2013, Marlin Equity Partners LLC, through its Blackhawk Merger Sub Inc wholly-owned subsidiary, acquired the entire share capital of Tellabs Inc.

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