ADTRAN (NASDAQ: ADTN) and Plantronics (NYSE:PLT) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Valuation and Earnings
This table compares ADTRAN and Plantronics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ADTRAN||$666.58 million||1.07||$23.84 million||$0.89||16.69|
ADTRAN has higher earnings, but lower revenue than Plantronics. ADTRAN is trading at a lower price-to-earnings ratio than Plantronics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.8% of ADTRAN shares are owned by institutional investors. Comparatively, 92.4% of Plantronics shares are owned by institutional investors. 2.5% of ADTRAN shares are owned by insiders. Comparatively, 1.7% of Plantronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares ADTRAN and Plantronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
ADTRAN has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Plantronics has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for ADTRAN and Plantronics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ADTRAN currently has a consensus price target of $19.38, suggesting a potential upside of 30.47%. Plantronics has a consensus price target of $60.00, suggesting a potential downside of 21.31%. Given ADTRAN’s higher possible upside, research analysts plainly believe ADTRAN is more favorable than Plantronics.
ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Plantronics pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. ADTRAN pays out 40.4% of its earnings in the form of a dividend. Plantronics pays out 22.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Plantronics beats ADTRAN on 9 of the 15 factors compared between the two stocks.
ADTRAN Company Profile
ADTRAN, Inc. provides networking and communications equipment worldwide. The company operates through two segments, Network Solutions and Services & Support. It offers access and aggregation solutions, including network management and subscriber services control and orchestration software within a SD-access architecture; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; and IP digital subscriber line access multiplexers. The company's access and aggregation solutions also comprise cabinet and outside-plant enclosures and services; pluggable optical transceivers, cables, and other miscellaneous materials; and other products and services. In addition, it provides customer devices comprising broadband customer premise solutions, such as passive optical network and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential and business gateways; Wi-Fi access points and related powering and switching infrastructure; enterprise session border controllers; carrier Ethernet services termination devices; voice over Internet protocol media gateways; and other products and services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; HDSL, ADSL, and other technologies; and other products and services. Additionally, it provides planning, engineering, program management, maintenance, support, installation, commissioning, and implementation services. The company serves communications service providers, distributed enterprises and small and medium-sized businesses, public and private enterprises, and individual users. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.
Plantronics Company Profile
Plantronics, Inc. designs, manufactures, and markets lightweight communications headsets, telephone headset systems, other communication endpoints, and accessories for the business and consumer markets under the Plantronics brand worldwide. The company also manufactures and markets specialty telephone products under the Clarity brand. Its primary products include corded and cordless communication headsets; audio processors; telephone systems; Bluetooth and corded products; personal computer and gaming headsets; and specialty products for hearing impaired individuals. The company designs its products for various markets and applications, such as offices and homes, contact centers, mobile phones and smartphones, tablets, computer and gaming, residential, and other specialty applications. Plantronics, Inc. sells its products through a network of distributors, retailers, wireless carriers, original equipment manufacturers, and telephony and other service providers. The company was founded in 1961 and is headquartered in Santa Cruz, California.
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