Head-To-Head Comparison: Ondas (NASDAQ:ONDS) versus Ribbon Communications (NASDAQ:RBBN)

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

Institutional and Insider Ownership

70.9% of Ribbon Communications shares are owned by institutional investors. Comparatively, 37.7% of Ondas shares are owned by institutional investors. 2.1% of Ribbon Communications shares are owned by insiders. Comparatively, 8.0% of Ondas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Ribbon Communications has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Ondas has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ribbon Communications	-6.00%	6.76%	2.37%
Ondas	-412.92%	-232.07%	-47.40%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ribbon Communications and Ondas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ribbon Communications	0	0	4	0	3.00
Ondas	0	0	2	0	3.00

Ribbon Communications currently has a consensus target price of $5.88, suggesting a potential upside of 49.11%. Ondas has a consensus target price of $3.25, suggesting a potential upside of 127.27%. Given Ondas’ higher probable upside, analysts plainly believe Ondas is more favorable than Ribbon Communications.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ribbon Communications	$833.88 million	0.83	-$54.24 million	($0.29)	-13.59
Ondas	$7.19 million	35.71	-$38.01 million	($0.58)	-2.47

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

Summary

Ribbon Communications beats Ondas on 7 of the 13 factors compared between the two stocks.

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.

About Ondas

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.