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RBBN vs NTGR
Revenue, margins, valuation, and 5-year total return — side by side.
Communication Equipment
RBBN vs NTGR — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Telecommunications Services | Communication Equipment |
| Market Cap | $472M | $708M |
| Revenue (TTM) | $826M | $690M |
| Net Income (TTM) | $31M | $-40M |
| Gross Margin | 48.7% | 37.5% |
| Operating Margin | -0.7% | -4.4% |
| Forward P/E | 20.7x | 129.4x |
| Total Debt | $405M | $51M |
| Cash & Equiv. | $96M | $210M |
RBBN vs NTGR — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Ribbon Communicatio… (RBBN) | 100 | 61.1 | -38.9% |
| NETGEAR, Inc. (NTGR) | 100 | 100.6 | +0.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RBBN vs NTGR
Each card shows where this stock fits in a portfolio — not just who wins on paper.
RBBN has the current edge in this matchup, primarily because of its strength in growth exposure.
- Rev growth 1.3%, EPS growth 171.0%, 3Y rev CAGR 1.0%
- Lower P/E (20.7x vs 129.4x)
- 3.8% margin vs NTGR's -5.8%
NTGR is the clearest fit if your priority is income & stability and long-term compounding.
- beta 1.39
- -37.7% 10Y total return vs RBBN's -68.2%
- Lower volatility, beta 1.39, Low D/E 10.2%, current ratio 2.69x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.9% revenue growth vs RBBN's 1.3% | |
| Value | Lower P/E (20.7x vs 129.4x) | |
| Quality / Margins | 3.8% margin vs NTGR's -5.8% | |
| Stability / Safety | Beta 1.39 vs RBBN's 1.49, lower leverage | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | -9.7% vs RBBN's -11.8% | |
| Efficiency (ROA) | 2.7% ROA vs NTGR's -4.9%, ROIC 2.1% vs -8.4% |
RBBN vs NTGR — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
RBBN vs NTGR — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
RBBN leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RBBN and NTGR operate at a comparable scale, with $826M and $690M in trailing revenue. RBBN is the more profitable business, keeping 3.8% of every revenue dollar as net income compared to NTGR's -5.8%. On growth, NTGR holds the edge at -2.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $826M | $690M |
| EBITDAEarnings before interest/tax | $40M | -$19M |
| Net IncomeAfter-tax profit | $31M | -$40M |
| Free Cash FlowCash after capex | $17M | -$11M |
| Gross MarginGross profit ÷ Revenue | +48.7% | +37.5% |
| Operating MarginEBIT ÷ Revenue | -0.7% | -4.4% |
| Net MarginNet income ÷ Revenue | +3.8% | -5.8% |
| FCF MarginFCF ÷ Revenue | +2.0% | -1.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -10.3% | -2.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -33.3% | -123.8% |
Valuation Metrics
RBBN leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $472M | $708M |
| Enterprise ValueMkt cap + debt − cash | $781M | $549M |
| Trailing P/EPrice ÷ TTM EPS | 12.23x | -22.71x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.69x | 129.45x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 9.57x | — |
| Price / SalesMarket cap ÷ Revenue | 0.56x | 1.02x |
| Price / BookPrice ÷ Book value/share | 1.08x | 1.50x |
| Price / FCFMarket cap ÷ FCF | 18.13x | — |
Profitability & Efficiency
RBBN leads this category, winning 4 of 7 comparable metrics.
Profitability & Efficiency
RBBN delivers a 7.9% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $-8 for NTGR. NTGR carries lower financial leverage with a 0.10x debt-to-equity ratio, signaling a more conservative balance sheet compared to RBBN's 0.90x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +7.9% | -8.0% |
| ROA (TTM)Return on assets | +2.7% | -4.9% |
| ROICReturn on invested capital | +2.1% | -8.4% |
| ROCEReturn on capital employed | +2.4% | -6.0% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.90x | 0.10x |
| Net DebtTotal debt minus cash | $309M | -$159M |
| Cash & Equiv.Liquid assets | $96M | $210M |
| Total DebtShort + long-term debt | $405M | $51M |
| Interest CoverageEBIT ÷ Interest expense | -0.02x | — |
Total Returns (Dividends Reinvested)
NTGR leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in NTGR five years ago would be worth $6,704 today (with dividends reinvested), compared to $3,899 for RBBN. Over the past 12 months, NTGR leads with a -9.7% total return vs RBBN's -11.8%. The 3-year compound annual growth rate (CAGR) favors NTGR at 23.1% vs RBBN's 0.6% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -7.2% | +6.5% |
| 1-Year ReturnPast 12 months | -11.8% | -9.7% |
| 3-Year ReturnCumulative with dividends | +1.9% | +86.5% |
| 5-Year ReturnCumulative with dividends | -61.0% | -33.0% |
| 10-Year ReturnCumulative with dividends | -68.2% | -37.7% |
| CAGR (3Y)Annualised 3-year return | +0.6% | +23.1% |
Risk & Volatility
NTGR leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
NTGR is the less volatile stock with a 1.39 beta — it tends to amplify market swings less than RBBN's 1.49 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NTGR currently trades 70.2% from its 52-week high vs RBBN's 62.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.49x | 1.39x |
| 52-Week HighHighest price in past year | $4.29 | $36.86 |
| 52-Week LowLowest price in past year | $1.80 | $19.00 |
| % of 52W HighCurrent price vs 52-week peak | +62.7% | +70.2% |
| RSI (14)Momentum oscillator 0–100 | 54.3 | 56.1 |
| Avg Volume (50D)Average daily shares traded | 879K | 515K |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates RBBN as "Buy" and NTGR as "Hold". Consensus price targets imply 39.0% upside for NTGR (target: $36) vs 30.1% for RBBN (target: $4).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $3.50 | $36.00 |
| # AnalystsCovering analysts | 8 | 17 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.9% | +7.2% |
RBBN leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). NTGR leads in 2 (Total Returns, Risk & Volatility).
RBBN vs NTGR: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RBBN or NTGR a better buy right now?
For growth investors, NETGEAR, Inc.
(NTGR) is the stronger pick with 2. 9% revenue growth year-over-year, versus 1. 3% for Ribbon Communications Inc. (RBBN). Ribbon Communications Inc. (RBBN) offers the better valuation at 12. 2x trailing P/E (20. 7x forward), making it the more compelling value choice. Analysts rate Ribbon Communications Inc. (RBBN) a "Buy" — based on 8 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — RBBN or NTGR?
On forward P/E, Ribbon Communications Inc.
is actually cheaper at 20. 7x.
03Which is the better long-term investment — RBBN or NTGR?
Over the past 5 years, NETGEAR, Inc.
(NTGR) delivered a total return of -33. 0%, compared to -61. 0% for Ribbon Communications Inc. (RBBN). Over 10 years, the gap is even starker: NTGR returned -37. 7% versus RBBN's -68. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RBBN or NTGR?
By beta (market sensitivity over 5 years), NETGEAR, Inc.
(NTGR) is the lower-risk stock at 1. 39β versus Ribbon Communications Inc. 's 1. 49β — meaning RBBN is approximately 8% more volatile than NTGR relative to the S&P 500. On balance sheet safety, NETGEAR, Inc. (NTGR) carries a lower debt/equity ratio of 10% versus 90% for Ribbon Communications Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — RBBN or NTGR?
By revenue growth (latest reported year), NETGEAR, Inc.
(NTGR) is pulling ahead at 2. 9% versus 1. 3% for Ribbon Communications Inc. (RBBN). On earnings-per-share growth, the picture is similar: Ribbon Communications Inc. grew EPS 171. 0% year-over-year, compared to -371. 4% for NETGEAR, Inc.. Over a 3-year CAGR, RBBN leads at 1. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — RBBN or NTGR?
Ribbon Communications Inc.
(RBBN) is the more profitable company, earning 4. 7% net margin versus -4. 7% for NETGEAR, Inc. — meaning it keeps 4. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RBBN leads at 2. 4% versus -5. 1% for NTGR. At the gross margin level — before operating expenses — RBBN leads at 47. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is RBBN or NTGR more undervalued right now?
On forward earnings alone, Ribbon Communications Inc.
(RBBN) trades at 20. 7x forward P/E versus 129. 4x for NETGEAR, Inc. — 108. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NTGR: 39. 0% to $36. 00.
08Which pays a better dividend — RBBN or NTGR?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is RBBN or NTGR better for a retirement portfolio?
For long-horizon retirement investors, NETGEAR, Inc.
(NTGR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Both have compounded well over 10 years (NTGR: -37. 7%, RBBN: -68. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between RBBN and NTGR?
These companies operate in different sectors (RBBN (Communication Services) and NTGR (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: RBBN is a small-cap deep-value stock; NTGR is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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