Redline Communications Group (OTCMKTS:RDLCF) vs. ADTRAN (NASDAQ:ADTN) Critical Contrast

Redline Communications Group (OTCMKTS:RDLCF) and ADTRAN (NASDAQ:ADTN) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Earnings and Valuation

This table compares Redline Communications Group and ADTRAN’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redline Communications Group	N/A	N/A	N/A	N/A	N/A
ADTRAN	$949.97 million	0.45	-$267.69 million	($6.88)	-0.78

Redline Communications Group has higher earnings, but lower revenue than ADTRAN.

Insider and Institutional Ownership

80.6% of ADTRAN shares are owned by institutional investors. 2.0% of ADTRAN shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Redline Communications Group and ADTRAN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redline Communications Group	N/A	N/A	N/A
ADTRAN	-58.64%	-29.26%	-8.54%

Analyst Ratings

This is a summary of recent recommendations and price targets for Redline Communications Group and ADTRAN, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redline Communications Group	0	0	0	0	N/A
ADTRAN	0	2	2	1	2.80

ADTRAN has a consensus target price of $7.17, suggesting a potential upside of 32.96%. Given ADTRAN’s higher probable upside, analysts plainly believe ADTRAN is more favorable than Redline Communications Group.

Summary

ADTRAN beats Redline Communications Group on 6 of the 9 factors compared between the two stocks.

About Redline Communications Group

Redline Communications Group Inc., together with its subsidiaries, develops broadband fixed wireless base stations, subscriber stations, and network management systems for point-to-point and point-to-multipoint applications for commercial end-users. It operates through Hardware and Software, Professional Services and 3rd Party Equipment, and Maintenance and Support segments. The company offers Ellipse, a series of base stations; Edge and Elte wireless terminals; Enterprise, a wireless customer premise equipment; RAS-Elite, a portable auto-acquire outdoor wireless solution; RAS-Extend, a mechanical auto tracking system; RDL-3000 connect series of remote terminals; PoE, an industrial grade power injector; and FlexCore, an EPC software. It also provides FlexTALK, a push-to-talk solution; and ClearView NMS, a network management software, as well as antennas, cables, mounting kits, POE power injectors, and surge protectors. In addition, the company offers RF planning and site survey, 4G and 5G mobile network design and optimization, deployment and resident engineering, wireless network performance audit, and program and project management services. It serves oil and gas, mining, utilities, transportation, government, military, and telecom service provider markets through regional distributors, channel partners, and systems integrators. The company has operations in the Americas, the Middle East, Europe, Africa, and the Asia Pacific. Redline Communications Group Inc. was founded in 1999 and is headquartered in Markham, Canada.

About ADTRAN

ADTRAN Holdings, Inc., through its subsidiaries, provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally. It operates through two segments, Network Solutions, and Services & Support. It offers residential gateways; ethernet passive optical network ONUs; gigabit passive optical network/XGS-PON ONTs; traditional SSE, routers, and switches; edge cloud; carrier ethernet network interface devices; Optical Line Terminals; Packet Aggregation, Copper Access, and Oscilloquartz; optical transport and engine solutions; infrastructure monitoring solution; and training, professional, software, and managed services. The company also provides various software, such as Mosaic One SaaS, n-Command, Procloud, MCP, AOE and ACI-E, and Ensemble Controller. It serves large, medium, and small service providers; alternative service providers, such as utilities, municipalities and fiber overbuilders; cable/MSOs; and SMBs and distributed enterprises. ADTRAN Holdings, Inc. was incorporated in 1985 and is headquartered in Huntsville, Alabama.