Analyzing Pony AI (NASDAQ:PONY) & Ribbon Communications (NASDAQ:RBBN)

Ribbon Communications (NASDAQ:RBBN) and Pony AI (NASDAQ:PONY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Ribbon Communications and Pony AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ribbon Communications	0	0	3	0	3.00
Pony AI	0	0	2	0	3.00

Ribbon Communications presently has a consensus price target of $6.00, indicating a potential upside of 44.58%. Pony AI has a consensus price target of $18.80, indicating a potential upside of 23.28%. Given Ribbon Communications’ higher probable upside, research analysts clearly believe Ribbon Communications is more favorable than Pony AI.

Profitability

This table compares Ribbon Communications and Pony AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ribbon Communications	-6.62%	5.41%	2.04%
Pony AI	N/A	N/A	N/A

Institutional and Insider Ownership

70.9% of Ribbon Communications shares are held by institutional investors. 2.1% of Ribbon Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Ribbon Communications and Pony AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ribbon Communications	$808.92 million	0.90	-$66.21 million	($0.32)	-12.97
Pony AI	$84.33 million	63.10	N/A	N/A	N/A

Pony AI has lower revenue, but higher earnings than Ribbon Communications.

Summary

Ribbon Communications beats Pony AI on 7 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 Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.