ADTRAN (ADTN) versus Its Peers Critical Review
by Tristan Rich · The Markets DailyADTRAN (NASDAQ:ADTN – Get Free Report) is one of 251 publicly-traded companies in the “Technology Services” industry, but how does it contrast to its peers? We will compare ADTRAN to similar businesses based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, risk and valuation.
Institutional and Insider Ownership
80.6% of ADTRAN shares are held by institutional investors. Comparatively, 37.3% of shares of all “Technology Services” companies are held by institutional investors. 1.5% of ADTRAN shares are held by company insiders. Comparatively, 18.7% of shares of all “Technology Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares ADTRAN and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| ADTRAN | $1.08 billion | -$45.66 million | -28.30 |
| ADTRAN Competitors | $1.31 billion | $38.78 million | 1.95 |
ADTRAN’s peers have higher revenue and earnings than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Analyst Ratings
This is a summary of current ratings and target prices for ADTRAN and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ADTRAN | 1 | 2 | 3 | 0 | 2.33 |
| ADTRAN Competitors | 1813 | 2882 | 5509 | 350 | 2.42 |
ADTRAN presently has a consensus target price of $15.33, suggesting a potential upside of 6.25%. As a group, “Technology Services” companies have a potential upside of 27.53%. Given ADTRAN’s peers stronger consensus rating and higher possible upside, analysts clearly believe ADTRAN has less favorable growth aspects than its peers.
Risk & Volatility
ADTRAN has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, ADTRAN’s peers have a beta of -14.12, indicating that their average stock price is 1,512% less volatile than the S&P 500.
Profitability
This table compares ADTRAN and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ADTRAN | -4.15% | 4.23% | 0.52% |
| ADTRAN Competitors | -356.35% | -38.78% | -12.61% |
Summary
ADTRAN peers beat ADTRAN on 8 of the 13 factors compared.
ADTRAN Company Profile
ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.