Head to Head Review: Ribbon Communications (NASDAQ:RBBN) and ARB IOT Group (NASDAQ:ARBB)

ARB IOT Group (NASDAQ:ARBB) and Ribbon Communications (NASDAQ:RBBN) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ARB IOT Group and Ribbon Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARB IOT Group	0	0	0	0	0.00
Ribbon Communications	0	0	4	0	3.00

Ribbon Communications has a consensus target price of $6.00, indicating a potential upside of 20.00%. Given Ribbon Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Ribbon Communications is more favorable than ARB IOT Group.

Earnings and Valuation

This table compares ARB IOT Group 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
ARB IOT Group	$58.19 million	0.21	-$11.65 million	N/A	N/A
Ribbon Communications	$826.34 million	1.06	-$66.21 million	($0.32)	-15.62

ARB IOT Group has higher earnings, but lower revenue than Ribbon Communications.

Profitability

This table compares ARB IOT Group and Ribbon Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARB IOT Group	N/A	N/A	N/A
Ribbon Communications	-6.62%	5.41%	2.04%

Volatility and Risk

ARB IOT Group has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

14.8% of ARB IOT Group shares are owned by institutional investors. Comparatively, 70.9% of Ribbon Communications shares are owned by institutional investors. 2.1% of Ribbon Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Ribbon Communications beats ARB IOT Group on 9 of the 12 factors compared between the two stocks.

About ARB IOT Group

ARB IOT Group Limited, through its subsidiaries, provides Internet of Things (IoT) system solutions, and system integration and support services in Malaysia. It offers IoT smart home and building solutions, such as design, procurement, and provision of smart home products and devices; integration services; and electrical wire installation and home data network setup for homeowners, as well as provides smart building solutions, including design, procurement, installation, testing, pre-commissioning and commissioning of various IoT systems, solutions, and devices; and integration of automated systems for smart buildings, including installation of wire and wireless, and mechatronic works for property developers and contractors. The company offers IoT smart agriculture solutions, such as designing the layout of the smart farm for the application and integration of IoT in farming and hydroponics, which includes the procurement of sensors and surveillance cameras, as well as other hardware for farm; designing of software to enable transfer of data from the smart farm to a cloud server, which can then be accessed remotely through smart devices; installing, testing, and commissioning of the hardware and software; and after-sales services comprising data analytics and periodic maintenance services. In addition, it provides IoT system development solutions, including procuring, supplying, and delivering industrial building systems for construction projects; and IoT gadget distribution solutions comprising supply chain and distribution of smart phones, accessories, and ICT and IoT products, as well as provides shipping tracking and status updates, customer care line, online chat support, digital marketing, pre-installation, and warranty services. The company was incorporated in 2022 and is based in Kuala Lumpur, Malaysia. ARB IOT Group Limited is a subsidiary of ARB Berhad.

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.