Ribbon Communications (NASDAQ:RBBN) versus Plum Acquisition Corp. I (NASDAQ:PLMI) Critical Review

Ribbon Communications (NASDAQ:RBBN) and Plum Acquisition Corp. I (NASDAQ:PLMI) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

70.9% of Ribbon Communications shares are owned by institutional investors. Comparatively, 25.9% of Plum Acquisition Corp. I shares are owned by institutional investors. 2.1% of Ribbon Communications shares are owned by company insiders. Comparatively, 71.0% of Plum Acquisition Corp. I shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Ribbon Communications and Plum Acquisition Corp. I, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ribbon Communications	0	0	2	0	3.00
Plum Acquisition Corp. I	0	0	0	0	N/A

Ribbon Communications presently has a consensus target price of $5.83, indicating a potential upside of 98.41%. Given Ribbon Communications’ higher probable upside, equities research analysts plainly believe Ribbon Communications is more favorable than Plum Acquisition Corp. I.

Profitability

This table compares Ribbon Communications and Plum Acquisition Corp. I’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ribbon Communications	-6.68%	5.32%	2.06%
Plum Acquisition Corp. I	N/A	N/A	-9.03%

Valuation and Earnings

This table compares Ribbon Communications and Plum Acquisition Corp. I’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ribbon Communications	$801.85 million	0.64	-$66.21 million	($0.35)	-8.40
Plum Acquisition Corp. I	N/A	N/A	-$30,000.00	N/A	N/A

Plum Acquisition Corp. I has lower revenue, but higher earnings than Ribbon Communications.

Summary

Ribbon Communications beats Plum Acquisition Corp. I on 6 of the 9 factors compared between the two stocks.

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.

About Plum Acquisition Corp. I

Plum Acquisition Corp. I does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in San Francisco, California. Plum Acquisition Corp. I operates as a subsidiary of Plum Partners, LLC.