Ituran Location and Control (NASDAQ:ITRN – Get Free Report) and Ribbon Communications (NASDAQ:RBBN – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a summary of recent ratings for Ituran Location and Control and Ribbon Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ituran Location and Control | 0 | 1 | 4 | 0 | 2.80 |
| Ribbon Communications | 1 | 1 | 4 | 0 | 2.50 |
Ituran Location and Control presently has a consensus price target of $60.67, suggesting a potential upside of 16.01%. Ribbon Communications has a consensus price target of $3.20, suggesting a potential upside of 99.38%. Given Ribbon Communications’ higher possible upside, analysts plainly believe Ribbon Communications is more favorable than Ituran Location and Control.
Earnings & Valuation
This table compares Ituran Location and Control and Ribbon Communications”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ituran Location and Control | $359.02 million | 2.90 | $57.97 million | $3.24 | 16.14 |
| Ribbon Communications | $844.56 million | 0.34 | $39.64 million | $0.10 | 16.05 |
Ituran Location and Control has higher earnings, but lower revenue than Ribbon Communications. Ribbon Communications is trading at a lower price-to-earnings ratio than Ituran Location and Control, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.8% of Ituran Location and Control shares are owned by institutional investors. Comparatively, 70.9% of Ribbon Communications shares are owned by institutional investors. 0.0% of Ituran Location and Control shares are owned by insiders. Comparatively, 4.0% of Ribbon Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Ituran Location and Control has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Profitability
This table compares Ituran Location and Control and Ribbon Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ituran Location and Control | 16.28% | 29.03% | 16.29% |
| Ribbon Communications | 2.32% | 20.61% | 7.29% |
Summary
Ituran Location and Control beats Ribbon Communications on 9 of the 13 factors compared between the two stocks.
About Ituran Location and Control
Ituran Location and Control Ltd., together with its subsidiaries, provides location based telematics services and machine-to-machine telematics products. It operates through two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enables to locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. This segment also delivers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The Telematics Products segment offers Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.
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.
Receive News & Ratings for Ituran Location and Control Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ituran Location and Control and related companies with MarketBeat.com's FREE daily email newsletter.
