Reviewing Sonus Networks (SONS) and Its Rivals

Sonus Networks (NASDAQ: SONS) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it compare to its competitors? We will compare Sonus Networks to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, analyst recommendations, profitability and risk.

Profitability

This table compares Sonus Networks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonus Networks -12.15% -6.18% -4.38%
Sonus Networks Competitors -1.71% -6.54% 0.52%

Valuation & Earnings

This table compares Sonus Networks and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sonus Networks $241.68 million -$12.30 million -13.35
Sonus Networks Competitors $2.41 billion $618.33 million 27.28

Sonus Networks’ competitors have higher revenue and earnings than Sonus Networks. Sonus Networks is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Sonus Networks has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, Sonus Networks’ competitors have a beta of 1.17, meaning that their average share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sonus Networks and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonus Networks 1 1 5 0 2.57
Sonus Networks Competitors 362 2389 3911 152 2.57

Sonus Networks currently has a consensus target price of $8.71, suggesting a potential upside of 8.72%. As a group, “Communications & Networking” companies have a potential upside of 21.98%. Given Sonus Networks’ competitors higher probable upside, analysts plainly believe Sonus Networks has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

68.6% of Sonus Networks shares are owned by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 7.7% of Sonus Networks shares are owned by company insiders. Comparatively, 12.5% of shares of all “Communications & Networking” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Sonus Networks competitors beat Sonus Networks on 7 of the 12 factors compared.

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.

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