Head-To-Head Contrast: Ribbon Communications (NASDAQ:RBBN) vs. Kubient (NASDAQ:KBNT)

Ribbon Communications (NASDAQ:RBBNGet Rating) and Kubient (NASDAQ:KBNTGet Rating) 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 valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Ribbon Communications and Kubient’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ribbon Communications $844.96 million 0.53 -$177.18 million ($1.72) -1.56
Kubient $2.74 million 6.36 -$10.29 million ($1.14) -1.06

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ribbon Communications and Kubient, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ribbon Communications 0 1 1 0 2.50
Kubient 0 0 0 0 N/A

Ribbon Communications currently has a consensus price target of $6.75, suggesting a potential upside of 151.87%. Kubient has a consensus price target of $6.00, suggesting a potential upside of 395.87%. Given Kubient’s higher probable upside, analysts plainly believe Kubient is more favorable than Ribbon Communications.

Profitability

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

Net Margins Return on Equity Return on Assets
Ribbon Communications -31.21% -0.25% -0.10%
Kubient -510.73% -55.63% -48.07%

Insider and Institutional Ownership

86.7% of Ribbon Communications shares are owned by institutional investors. Comparatively, 6.7% of Kubient shares are owned by institutional investors. 1.8% of Ribbon Communications shares are owned by company insiders. Comparatively, 20.9% of Kubient shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Ribbon Communications has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Kubient has a beta of 3.03, meaning that its share price is 203% more volatile than the S&P 500.

Summary

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

About Ribbon Communications

(Get Rating)

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; and solutions and services for enabling 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 controller and network transformation products. This segment serves private, public, or hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks. It also provides multiple solutions for VoIP, VoLTE, VoNR, and UC&C in network, on-premises, or via the telco cloud. The IP Optical Networks segment provides hardware and software solutions for IP networking, switching, routing, and optical transport to support and enable 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, legacy NTR, 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. It also provides advanced analytics solutions and next generation products that provides cloud-native and streaming analytics platform for networks and subscribers. 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 Kubient

(Get Rating)

Kubient, Inc. develops a cloud-based software platform for digital advertising industry. It develops Audience Marketplace, a platform for real-time trading of digital, programmatic advertising. The company's platform allows advertisers and publishers the ability to use machine learning during programmatic advertising inventory space auction. The company was incorporated in 2017 and is based in New York, New York.

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