Financial Survey: ADTRAN (ADTN) & Its Competitors

ADTRAN (NASDAQ:ADTN) is one of 251 public companies in the “Technology Services” industry, but how does it compare to its competitors? We will compare ADTRAN to similar companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ADTRAN	-4.15%	4.23%	0.52%
ADTRAN Competitors	-415.47%	-610.64%	-13.05%

Risk and Volatility

ADTRAN has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, ADTRAN’s competitors have a beta of -15.52, meaning that their average stock price is 1,652% less volatile than the S&P 500.

Insider and Institutional Ownership

80.6% of ADTRAN shares are owned by institutional investors. Comparatively, 37.7% of shares of all “Technology Services” companies are owned by institutional investors. 1.5% of ADTRAN shares are owned by insiders. Comparatively, 18.3% of shares of all “Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares ADTRAN and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ADTRAN	$1.08 billion	-$45.66 million	-23.90
ADTRAN Competitors	$1.31 billion	$38.74 million	2.85

ADTRAN’s competitors have higher revenue and earnings than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations for ADTRAN and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADTRAN	1	2	3	0	2.33
ADTRAN Competitors	1789	2865	5490	347	2.42

ADTRAN presently has a consensus target price of $15.33, indicating a potential upside of 25.79%. As a group, “Technology Services” companies have a potential upside of 47.98%. Given ADTRAN’s competitors stronger consensus rating and higher possible upside, analysts clearly believe ADTRAN has less favorable growth aspects than its competitors.

Summary

ADTRAN competitors beat ADTRAN on 8 of the 13 factors compared.

ADTRAN Company Profile

ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.