Head-To-Head Review: WeRide (NASDAQ:WRD) versus Ribbon Communications (NASDAQ:RBBN)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ribbon Communications	0	0	4	0	3.00
WeRide	0	0	0	0	0.00

Ribbon Communications currently has a consensus target price of $6.00, suggesting a potential upside of 65.75%. Given Ribbon Communications’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Ribbon Communications is more favorable than WeRide.

Insider & Institutional Ownership

70.9% of Ribbon Communications shares are owned by institutional investors. 2.1% of Ribbon Communications shares are owned by insiders. Comparatively, 2.7% of WeRide shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ribbon Communications	-6.50%	7.36%	2.73%
WeRide	N/A	N/A	N/A

Valuation and Earnings

This table compares Ribbon Communications and WeRide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ribbon Communications	$833.88 million	0.76	-$54.24 million	($0.32)	-11.31
WeRide	$361.13 million	6.97	-$275.41 million	N/A	N/A

Ribbon Communications has higher revenue and earnings than WeRide.

Summary

Ribbon Communications beats WeRide on 8 of the 11 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 WeRide

WeRide, Inc. engages in the development of an autonomous driving technology platform. It offers Robotaxi, Robobus, Robovan, Robosweeper, and advanced driving solutions, providing smart services in online ride-hailing, on-demand transport, urban logistics, and environmental sanitation. The company was founded by Tony Xu Han and Yan Li in February 2017 and is headquartered in Guangzhou, China.