Financial Analysis: Ribbon Communications (NASDAQ:RBBN) and Globe Telecom (OTCMKTS:GTMEY)

Ribbon Communications (NASDAQ:RBBN) and Globe Telecom (OTCMKTS:GTMEY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

70.9% of Ribbon Communications shares are owned by institutional investors. Comparatively, 0.1% of Globe Telecom shares are owned by institutional investors. 2.1% of Ribbon Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ribbon Communications and Globe Telecom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ribbon Communications	0	0	2	0	3.00
Globe Telecom	0	0	0	0	N/A

Ribbon Communications presently has a consensus price target of $6.00, suggesting a potential upside of 89.27%. Given Ribbon Communications’ higher probable upside, analysts plainly believe Ribbon Communications is more favorable than Globe Telecom.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ribbon Communications	-7.11%	4.26%	1.68%
Globe Telecom	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ribbon Communications	$826.34 million	0.66	-$66.21 million	($0.35)	-9.06
Globe Telecom	N/A	N/A	N/A	$89.75	0.32

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

Summary

Ribbon Communications beats Globe Telecom on 7 of the 10 factors compared between the two stocks.

About Ribbon Communications

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, solutions, and services for 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 controllers; and network transformation products, such as signaling products, call controllers, media gateways, and application servers. This segment serves private, public, or hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks. The IP Optical Networks segment provides hardware and software products and solutions for IP networking, switching, routing, and optical transport for 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, multi-service access, 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. 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 Globe Telecom

Globe Telecom, Inc. provides telecommunications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients in the Philippines. It operates through Mobile Communications Services and Wireline Communication Services segments. The company offers digital wireless communications services under the Globe Postpaid and Prepaid, and Touch Mobile brands; long distance communication or carrier services; broadband, as well as wireline voice and data communication services; and electronic payment and remittance services under the GCash brand. It provides value-added services, such as inbound and outbound short messaging, content downloading, mobile commerce, and other add-on services. The company also provides human capital management, business process, shared service support, Information technology and electronic, software development, IT system integration and consultancy, and advertising services. In addition, it offers marketing and distribution; data management; data center management; capital investment funds management; warehouse and logistics services; and support and shared services, as well as specific solutions for various industries. The company was incorporated in 1935 and is based in Taguig, the Philippines.