Comparing ADTRAN (NASDAQ:ADTN) and Vistance Networks (NASDAQ:VISN)

Vistance Networks (NASDAQ:VISN) and ADTRAN (NASDAQ:ADTN) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Risk and Volatility

Vistance Networks has a beta of 2.57, meaning that its share price is 157% more volatile than the S&P 500. Comparatively, ADTRAN has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Insider and Institutional Ownership

88.0% of Vistance Networks shares are owned by institutional investors. Comparatively, 80.6% of ADTRAN shares are owned by institutional investors. 3.5% of Vistance Networks shares are owned by company insiders. Comparatively, 2.2% of ADTRAN shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Vistance Networks and ADTRAN”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vistance Networks	$1.93 billion	0.65	$2.28 billion	$30.80	0.18
ADTRAN	$1.08 billion	0.31	-$45.66 million	($0.28)	-14.73

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

Analyst Ratings

This is a summary of current ratings for Vistance Networks and ADTRAN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vistance Networks	0	4	0	0	2.00
ADTRAN	1	3	3	0	2.29

Vistance Networks presently has a consensus price target of $19.33, indicating a potential upside of 257.69%. ADTRAN has a consensus price target of $11.21, indicating a potential upside of 171.72%. Given Vistance Networks’ higher probable upside, equities research analysts plainly believe Vistance Networks is more favorable than ADTRAN.

Profitability

This table compares Vistance Networks and ADTRAN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vistance Networks	247.69%	32.28%	4.61%
ADTRAN	-2.20%	17.76%	2.00%

Summary

Vistance Networks beats ADTRAN on 12 of the 14 factors compared between the two stocks.

About Vistance Networks

CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.

About ADTRAN

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.