Financial Review: Canna-Global Acquisition (NASDAQ:CNGL) & Ribbon Communications (NASDAQ:RBBN)

Canna-Global Acquisition (NASDAQ:CNGL) and Ribbon Communications (NASDAQ:RBBN) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares Canna-Global Acquisition and Ribbon Communications”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canna-Global Acquisition	N/A	N/A	N/A	N/A	N/A
Ribbon Communications	$833.88 million	0.99	-$54.24 million	($0.32)	-14.78

Canna-Global Acquisition has higher earnings, but lower revenue than Ribbon Communications.

Profitability

This table compares Canna-Global Acquisition and Ribbon Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canna-Global Acquisition	N/A	N/A	N/A
Ribbon Communications	-6.50%	7.36%	2.73%

Risk and Volatility

Canna-Global Acquisition has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Ribbon Communications has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Canna-Global Acquisition and Ribbon Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canna-Global Acquisition	0	0	0	0	0.00
Ribbon Communications	0	0	4	0	3.00

Ribbon Communications has a consensus target price of $6.00, suggesting a potential upside of 26.85%. Given Ribbon Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Ribbon Communications is more favorable than Canna-Global Acquisition.

Insider and Institutional Ownership

19.6% of Canna-Global Acquisition shares are held by institutional investors. Comparatively, 70.9% of Ribbon Communications shares are held by institutional investors. 72.1% of Canna-Global Acquisition shares are held by company insiders. Comparatively, 2.1% of Ribbon Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Ribbon Communications beats Canna-Global Acquisition on 8 of the 10 factors compared between the two stocks.

About Canna-Global Acquisition

Canna-Global Acquisition Corp. does not have significant operations. The company intends to acquire and engage in a share exchange, share reconstruction, and amalgamation with one or more businesses or entities. It intends to focus its search of target business in the cannabis industry. The company was incorporated in 2021 and is based in Marina Del Rey, California.

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.