Reviewing Ribbon Communications (RBBN) and Acme Packet (APKT)

Ribbon Communications (NASDAQ: RBBN) and Acme Packet (NASDAQ:APKT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ribbon Communications and Acme Packet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ribbon Communications 1 1 4 0 2.50
Acme Packet 0 0 0 0 N/A

Ribbon Communications presently has a consensus target price of $7.05, suggesting a potential downside of 6.75%.

Insider & Institutional Ownership

32.3% of Ribbon Communications shares are owned by institutional investors. 7.7% of Ribbon Communications shares are owned 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.

Profitability

This table compares Ribbon Communications and Acme Packet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ribbon Communications -8.82% -1.87% -1.32%
Acme Packet N/A N/A N/A

Valuation & Earnings

This table compares Ribbon Communications and Acme Packet’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ribbon Communications $252.59 million 3.07 -$13.93 million ($0.45) -16.80
Acme Packet N/A N/A N/A ($0.08) N/A

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

Acme Packet Company Profile

Acme Packet, Inc. provides session delivery network solutions, which enable the delivery of collaboration services, applications, and next-generation voice, video, data and unified communication and collaboration services and applications across Internet Protocol (IP), networks. The Company’s session delivery network solutions are used by over 1,925 Acme Packet customers in 109 countries. The Company’s customers include fixed line, cable, mobile, transit and over-the-top (OTT), communication service providers, as well as enterprises, contacts centers and government organizations. The Company sells its products and support services through over 330 distribution partners and through its direct sales force. In April 2012, the Company acquired IPTEGO GmbH.

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