Ribbon Communications (NASDAQ: RBBN) and VASCO Data Security International (NASDAQ:VDSI) 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 analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Institutional & Insider Ownership
84.5% of Ribbon Communications shares are held by institutional investors. Comparatively, 53.5% of VASCO Data Security International shares are held by institutional investors. 7.7% of Ribbon Communications shares are held by company insiders. Comparatively, 25.4% of VASCO Data Security International 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.
Ribbon Communications has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, VASCO Data Security International has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Ribbon Communications and VASCO Data Security International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VASCO Data Security International||0||0||2||0||3.00|
Ribbon Communications presently has a consensus price target of $7.05, indicating a potential upside of 31.78%. VASCO Data Security International has a consensus price target of $17.00, indicating a potential upside of 26.39%. Given Ribbon Communications’ higher possible upside, equities research analysts plainly believe Ribbon Communications is more favorable than VASCO Data Security International.
This table compares Ribbon Communications and VASCO Data Security International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VASCO Data Security International||-11.59%||6.12%||4.71%|
Earnings & Valuation
This table compares Ribbon Communications and VASCO Data Security International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ribbon Communications||$329.94 million||1.65||-$35.25 million||$0.07||76.43|
|VASCO Data Security International||$193.29 million||2.79||-$22.39 million||$0.43||31.28|
VASCO Data Security International has lower revenue, but higher earnings than Ribbon Communications. VASCO Data Security International is trading at a lower price-to-earnings ratio than Ribbon Communications, indicating that it is currently the more affordable of 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.
About VASCO Data Security International
VASCO Data Security International, Inc. designs, develops and markets digital solutions for identity, security and business productivity that protect and facilitate transactions online, via mobile devices, and in-person. The Company provides anti-fraud and digital transaction management solutions to financial institutions and other businesses. Its solutions secure access to data, assets, and applications for global enterprises; provide tools for application developers to easily integrate security functions into their Web-based and mobile applications, and facilitate digital transactions involving the signing, sending, and managing of documents. It also provides tools for application developers to integrate security functions into their Web-based and mobile applications. It facilitates digital transactions involving the signing, sending and managing of documents. Its security solutions include both open standards-based and solutions.
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