Financial Contrast: InterDigital (IDCC) vs. Sonus Networks (SONS)
InterDigital (NASDAQ: IDCC) and Sonus Networks (NASDAQ:SONS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
This table compares InterDigital and Sonus Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares InterDigital and Sonus Networks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|InterDigital||$665.85 million||3.79||$309.00 million||$7.24||10.06|
|Sonus Networks||$252.59 million||1.43||-$13.93 million||($0.45)||-16.04|
InterDigital has higher revenue and earnings than Sonus Networks. Sonus Networks is trading at a lower price-to-earnings ratio than InterDigital, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for InterDigital and Sonus Networks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
InterDigital currently has a consensus target price of $91.33, indicating a potential upside of 25.46%. Sonus Networks has a consensus target price of $8.71, indicating a potential upside of 20.61%. Given InterDigital’s higher possible upside, analysts plainly believe InterDigital is more favorable than Sonus Networks.
Insider & Institutional Ownership
74.9% of InterDigital shares are held by institutional investors. Comparatively, 67.8% of Sonus Networks shares are held by institutional investors. 1.9% of InterDigital shares are held by company insiders. Comparatively, 7.7% of Sonus Networks shares 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.
InterDigital pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Sonus Networks does not pay a dividend. InterDigital pays out 19.3% of its earnings in the form of a dividend.
Volatility & Risk
InterDigital has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Sonus Networks has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500.
InterDigital beats Sonus Networks on 10 of the 15 factors compared between the two stocks.
InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.
About Sonus Networks
Sonus Networks, Inc. (Sonus) is a provider of networked solutions for communications service providers and enterprises to help them secure and unify their real-time communications infrastructures. The Company helps communications service providers and enterprises hold the session initiation protocol (SIP) and fourth generation (4G)/long term evolution (LTE)-based solutions, including voice over Internet protocol (VoIP), voice over wireless fidelity (VoWiFi), video and unified communications (UC) by securing and enabling Internet Protocol (IP) networks. Its products include session border controllers (SBCs), diameter signaling controllers (DSCs) and VoWiFi solutions. Sonus Products include Sonus GSX9000 Open Services Switch, Sonus T7000 Intelligent Switching System, Sonus Diameter Signaling Controllers, Sonus Signal Transfer Points, Sonus PSX Policy & Routing Server, Sonus WebRTC Services Solution, Sonus Network Management Solutions and Virtualized Mobile Core (VMC) Solution.
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