Head-to-head review: Ribbon Communications (NASDAQ:RBBN) vs. Light & Wonder (NASDAQ:LNW)

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Ribbon Communications (NASDAQ:RBBN – Get Rating) and Light & Wonder (NASDAQ:LNW – Get Rating) are both IT and technology companies, but which is the best investment? We will compare the two companies based on institutional ownership strength, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Volatility and risk

Ribbon Communications has a beta of 0.92, which means its stock price is 8% less volatile than the S&P 500. In comparison, Light & Wonder has a beta of 1.78, which means its stock price is 78 % more volatile than the S&P 500.

Insider and Institutional Ownership

66.1% of Ribbon Communications shares are held by institutional investors. Comparatively, 93.2% of Light & Wonder shares are held by institutional investors. 1.8% of Ribbon Communications shares are held by insiders of the company. By comparison, 1.0% of Light & Wonder’s stock is held by company insiders. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Valuation and benefits

This table compares revenue, earnings per share (EPS), and valuation of Ribbon Communications and Light & Wonder.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Ribbon Communications $844.96 million 0.55 -$177.18 million ($1.37) -2.26
Light & Wonder $2.15 billion 1.94 $371.00 million $4.15 10.53

Light & Wonder has higher revenue and profit than Ribbon Communications. Ribbon Communications trades at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a summary of recent ratings from Ribbon Communications and Light & Wonder, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Ribbon Communications 0 0 2 0 3.00
Light & Wonder 0 0 0 0 N / A

Ribbon Communications currently has a consensus price target of $6.75, suggesting a potential upside of 118.45%. Light & Wonder has a consensus price target of $53.00, suggesting a potential upside of 21.31%. Given Ribbon Communications’ likely higher upside, analysts clearly believe Ribbon Communications is more favorable than Light & Wonder.

Profitability

This table compares the net margins, return on equity and return on assets of Ribbon Communications and Light & Wonder.

Net margins Return on equity return on assets
Ribbon Communications -24.53% 2.76% 1.19%
Light & Wonder 16.02% -8.77% 2.45%

Summary

Light & Wonder beats Ribbon Communications on 9 out of 13 factors compared between the two stocks.

Ribbon Communications Company Profile (Get an evaluation)

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, 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; and solutions and services to enable voice over internet protocol communications, voice over protocol long-term evolution, voice over 5G communications, and unified communications and collaboration. It also offers edge session controller and network transformation products. This segment serves private, public or hybrid cloud infrastructures, as well as data centers, corporate premises and service provider networks. It also provides several solutions for VoIP, VoLTE, VoNR and UC&C in the network, on premises or via the telecommunications cloud. The IP Optical Networks segment provides hardware and software solutions for IP optical networking, switching, routing and transport to support and enable technologies such as 5G, distributed cloud computing and corresponding apps. It also offers several solutions, including 5G native solutions for mobile backhaul, metro and edge aggregation, core networking, data center interconnect, legacy NTR and carrier solutions for wholesale carriers. . This segment serves the utility, government, defense, finance, transportation, education and research sectors, as well as service providers and enterprises. It also provides advanced analytics solutions and next-generation products that provide a cloud-native, streaming analytics platform for networks and subscribers. 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.

Light & Wonder Company Profile (Get an evaluation)

Light & Wonder, Inc. develops technology-based products and services and related content for the gaming, lottery, social and digital gaming industries in the United States and around the world. The Company’s Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, game conversion kits and spare parts; tabletop products, including mixers; and perpetual licenses on exclusive table games. It also provides game content, game machines; provides table game products and services to licensed gaming entities; and installs and supports casino management systems, such as ongoing hardware and software maintenance and upgrade services for customers’ casino management systems. The Company’s SciPlay segment develops and publishes digital games on mobile and web platforms. It sells virtual coins, tokens or bingo cards, which players can use to play slot games, table games or bingo games. Its iGaming segment provides a suite of digital gaming content, including real-money digital gaming, distribution platforms, content, products and services. This segment also offers the Open Platform System, which offers a range of reporting and administration functions and tools that allow operators to control various areas of digital gaming operations. The company also offers software design, development, licensing, maintenance, support and technology services. Light & Wonder, Inc. was incorporated in 1984 and is based in Las Vegas, Nevada.



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