Critical Comparison: ADTRAN (NASDAQ:ADTN) versus G6 Materials (OTCMKTS:GPHBF)

G6 Materials (OTCMKTS:GPHBF) and ADTRAN (NASDAQ:ADTN) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility & Risk

G6 Materials has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, ADTRAN has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Valuation & Earnings

This table compares G6 Materials and ADTRAN”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
G6 Materials	N/A	N/A	N/A	($0.10)	N/A
ADTRAN	$1.12 billion	0.85	-$45.66 million	($0.39)	-30.14

G6 Materials has higher earnings, but lower revenue than ADTRAN. ADTRAN is trading at a lower price-to-earnings ratio than G6 Materials, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

80.6% of ADTRAN shares are owned by institutional investors. 2.2% of ADTRAN shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for G6 Materials and ADTRAN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
G6 Materials	0	0	0	0	0.00
ADTRAN	1	1	4	0	2.50

ADTRAN has a consensus target price of $18.00, indicating a potential upside of 53.13%. Given ADTRAN’s stronger consensus rating and higher probable upside, analysts clearly believe ADTRAN is more favorable than G6 Materials.

Profitability

This table compares G6 Materials and ADTRAN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
G6 Materials	N/A	N/A	N/A
ADTRAN	-3.18%	10.94%	1.35%

Summary

ADTRAN beats G6 Materials on 9 of the 11 factors compared between the two stocks.

About G6 Materials

G6 Materials Corp., through its subsidiaries, develops, manufactures, and sells proprietary products based on graphene and other materials. It offers air purification materials; general purpose, flexible, high-temperature, and room temperature adhesives; advanced materials and composite formulations for businesses and daily life industries, as well as air, sea, and land applications. The company also provides a suite of graphene products through its e-commerce platform. It serves various industries, including aerospace, automotive, healthcare, marine, medical prosthetics, and various branches of the military. The company was formerly known as Graphene 3D Lab Inc. and changed its name to G6 Materials Corp. in January 2020. The company was incorporated in 2011 and is headquartered in Ronkonkoma, New York.

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.