Ribbon Communications (NASDAQ: RBBN) and Aerohive Networks (NYSE:HIVE) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Institutional and Insider Ownership
83.9% of Ribbon Communications shares are held by institutional investors. Comparatively, 46.8% of Aerohive Networks shares are held by institutional investors. 7.7% of Ribbon Communications shares are held by insiders. Comparatively, 26.2% of Aerohive Networks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Ribbon Communications and Aerohive Networks’ revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Aerohive Networks has lower revenue, but higher earnings than Ribbon Communications. Aerohive 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.
Risk & Volatility
Ribbon Communications has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Aerohive Networks has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
This is a breakdown of recent ratings for Ribbon Communications and Aerohive Networks, as reported by MarketBeat.
||Strong Buy Ratings
Ribbon Communications presently has a consensus target price of $7.05, indicating a potential upside of 37.70%. Aerohive Networks has a consensus target price of $6.13, indicating a potential upside of 39.20%. Given Aerohive Networks’ stronger consensus rating and higher possible upside, analysts plainly believe Aerohive Networks is more favorable than Ribbon Communications.
This table compares Ribbon Communications and Aerohive Networks’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Ribbon Communications beats Aerohive Networks on 9 of the 14 factors compared between the two stocks.
Ribbon Communications Company Profile
Sonus Networks, Inc., formerly Solstice Sapphire Investments, Inc., is a provider of networked solutions for communications service providers and enterprises to help them secure and unify their real-time communications infrastructures. The Company helps communications service providers and enterprises hold the session initiation protocol (SIP) and fourth generation (4G)/long term evolution (LTE)-based solutions, including voice over Internet protocol (VoIP), voice over wireless fidelity (VoWiFi), video and unified communications (UC) by securing and enabling Internet Protocol (IP) networks. Its products include session border controllers (SBCs), diameter signaling controllers (DSCs) and VoWiFi solutions. Sonus Products include Sonus GSX9000 Open Services Switch, Sonus T7000 Intelligent Switching System, Sonus Diameter Signaling Controllers, Sonus Signal Transfer Points, Sonus PSX Policy & Routing Server, Sonus WebRTC Services Solution, and Sonus Network Management Solutions.
Aerohive Networks Company Profile
Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.
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