Critical Review: Sharing Economy International (OTCMKTS:SEII) vs. Ribbon Communications (NASDAQ:RBBN)

Sharing Economy International (OTCMKTS:SEII) and Ribbon Communications (NASDAQ:RBBN) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Valuation & Earnings

This table compares Sharing Economy International and Ribbon Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sharing Economy International	$320,000.00	0.00	-$4.15 million	N/A	N/A
Ribbon Communications	$808.92 million	0.86	-$66.21 million	($0.32)	-12.38

Sharing Economy International has higher earnings, but lower revenue than Ribbon Communications.

Institutional & Insider Ownership

0.6% of Sharing Economy International shares are owned by institutional investors. Comparatively, 70.9% of Ribbon Communications shares are owned by institutional investors. 0.1% of Sharing Economy International shares are owned by company insiders. Comparatively, 2.1% of Ribbon Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sharing Economy International and Ribbon Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sharing Economy International	N/A	N/A	N/A
Ribbon Communications	-6.62%	5.41%	2.04%

Analyst Ratings

This is a summary of recent recommendations for Sharing Economy International and Ribbon Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sharing Economy International	0	0	0	0	0.00
Ribbon Communications	0	0	3	0	3.00

Ribbon Communications has a consensus price target of $6.00, indicating a potential upside of 51.52%. Given Ribbon Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Ribbon Communications is more favorable than Sharing Economy International.

Volatility and Risk

Sharing Economy International has a beta of -2.89, meaning that its share price is 389% less volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Summary

Ribbon Communications beats Sharing Economy International on 9 of the 11 factors compared between the two stocks.

About Sharing Economy International

Sharing Economy International Inc. focuses on the development of sharing economy platforms and related rental businesses. The company operates rental stations that offer power banks for mobile charging on-demand and other items; and provision of consulting and office support services. It also engages in the real estate and property management businesses; provision of management services; online media and advertising business; and production of films. In addition, the company develops and operates a sharing economy mobile platform for courier services; develops an interactive virtual tour of a physical space using a mobile phone camera; operates online platforms; and operates a bike sharing mobile app, as well as provides licensing services. Sharing Economy International Inc. was formerly known as Cleantech Solutions International, Inc. and changed its name to Sharing Economy International Inc. in January 2018. The company was incorporated in 1987 and is based in Tuen Mun, Hong Kong.

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.