Ribbon Communications (RBBN) and CSP (CSPI) Critical Comparison
Ribbon Communications (NASDAQ:RBBN) and CSP (NASDAQ:CSPI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
CSP pays an annual dividend of $0.60 per share and has a dividend yield of 5.7%. Ribbon Communications does not pay a dividend. CSP has increased its dividend for 6 consecutive years.
This is a summary of current ratings for Ribbon Communications and CSP, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ribbon Communications presently has a consensus price target of $8.75, indicating a potential upside of 66.98%. Given Ribbon Communications’ higher possible upside, equities analysts clearly believe Ribbon Communications is more favorable than CSP.
Volatility & Risk
Ribbon Communications has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, CSP has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership
79.8% of Ribbon Communications shares are held by institutional investors. Comparatively, 24.9% of CSP shares are held by institutional investors. 1.8% of Ribbon Communications shares are held by company insiders. Comparatively, 10.1% of CSP shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Ribbon Communications and CSP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Ribbon Communications and CSP’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ribbon Communications||$577.91 million||0.97||-$76.81 million||$0.48||10.92|
|CSP||$72.92 million||0.60||$14.44 million||N/A||N/A|
CSP has lower revenue, but higher earnings than Ribbon Communications.
Ribbon Communications beats CSP on 8 of the 13 factors compared between the two stocks.
About Ribbon Communications
Ribbon Communications Inc. provides networked solutions in the United States, Europe, the Middle East, Africa, Japan, rest of the Asia Pacific, and internationally. The company offers service provider solutions, such as fixed network transformation, mobile network evolution, secure network interconnects, network functions virtualization, cloud communications, and communications security solutions that enables to modernize communications networks, as well as provides secure real-time communications software, hardware, and cloud-native solutions. Its enterprise solutions include unified communications (UC), Nortel private branch exchange evolution, UC security, contact centers, Microsoft Skype for Business, session management, and security and cloud communications solutions that allows enterprises to connect securely to SIP trunks and modernize communications networks. The company also offers solution and business consulting, system integration, deployment, and managed care services; and support services, such as managing software updates, hardware maintenance, hardware spare services and managed spares programs, and emergency assistance during disaster recovery. It serves telecommunications, wireless and cable service providers, and enterprises through direct sales and indirect channels. 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 Westford, Massachusetts.
CSP Inc. develops and markets IT integration solutions, security and managed services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. The company's High Performance Products segment offers computing systems for digital signal processing applications in the defense market; Ethernet adapters and solutions for various applications in the packet capture, financial transaction, and storage interconnect markets; ARC Series adapters for financial trading and network monitoring; and nVoy Series products comprising 100G Packet Broker and 10G Packet Recorder, and specialized software under the Myricom brand. Its Technology Solutions segment provides third-party computer hardware and software as a value added reseller to various customers in Web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as implementation, integration, migration, configuration, installation, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; maintenance and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT Infrastructure, collaboration and resale, security, and backup and replication. CSP Inc. was founded in 1968 and is headquartered in Lowell, Massachusetts.
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