Financial Contrast: Sonus Networks (SONS) and UTStarcom Holdings Corp (UTSI)
Sonus Networks (NASDAQ: SONS) and UTStarcom Holdings Corp (NASDAQ:UTSI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Insider and Institutional Ownership
68.7% of Sonus Networks shares are owned by institutional investors. Comparatively, 25.9% of UTStarcom Holdings Corp shares are owned by institutional investors. 7.7% of Sonus Networks shares are owned by insiders. Comparatively, 2.7% of UTStarcom Holdings Corp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Sonus Networks and UTStarcom Holdings Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|UTStarcom Holdings Corp||1.24%||1.07%||0.49%|
Valuation and Earnings
This table compares Sonus Networks and UTStarcom Holdings Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sonus Networks||$241.68 million||1.42||-$12.30 million||($0.60)||-11.48|
|UTStarcom Holdings Corp||$80.18 million||0.98||$535,000.00||$0.02||111.06|
UTStarcom Holdings Corp has higher revenue, but lower earnings than Sonus Networks. Sonus Networks is trading at a lower price-to-earnings ratio than UTStarcom Holdings Corp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Sonus Networks and UTStarcom Holdings Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|UTStarcom Holdings Corp||0||0||0||0||N/A|
Sonus Networks currently has a consensus target price of $8.71, suggesting a potential upside of 26.39%. Given Sonus Networks’ higher probable upside, analysts plainly believe Sonus Networks is more favorable than UTStarcom Holdings Corp.
Volatility & Risk
Sonus Networks has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, UTStarcom Holdings Corp has a beta of -0.34, indicating that its stock price is 134% less volatile than the S&P 500.
Sonus Networks beats UTStarcom Holdings Corp on 7 of the 12 factors compared between the two stocks.
Sonus Networks Company Profile
Sonus Networks, Inc. (Sonus) 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, Sonus Network Management Solutions and Virtualized Mobile Core (VMC) Solution.
UTStarcom Holdings Corp Company Profile
UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.
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