Comparing GTT Communications (GTT) & Verizon Communications (VZ)

GTT Communications (NYSE:GTT) and Verizon Communications (NYSE:VZ) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares GTT Communications and Verizon Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GTT Communications $827.90 million 1.71 -$71.50 million $0.24 107.75
Verizon Communications $126.03 billion 1.90 $30.10 billion $3.74 15.51



Verizon Communications has higher revenue and earnings than GTT Communications. Verizon Communications is trading at a lower price-to-earnings ratio than GTT Communications, indicating that it is currently the more affordable of the two stocks.

Dividends

Verizon Communications pays an annual dividend of $2.41 per share and has a dividend yield of 4.2%. GTT Communications does not pay a dividend. Verizon Communications pays out 64.4% of its earnings in the form of a dividend. Verizon Communications has raised its dividend for 12 consecutive years.

Volatility & Risk

GTT Communications has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Verizon Communications has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares GTT Communications and Verizon Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GTT Communications -18.67% -13.27% -1.45%
Verizon Communications 24.71% 35.50% 6.98%

Institutional and Insider Ownership

85.1% of GTT Communications shares are held by institutional investors. Comparatively, 64.8% of Verizon Communications shares are held by institutional investors. 23.0% of GTT Communications shares are held by insiders. Comparatively, 0.1% of Verizon Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for GTT Communications and Verizon Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GTT Communications 1 1 8 0 2.70
Verizon Communications 0 9 12 0 2.57

GTT Communications presently has a consensus price target of $48.44, indicating a potential upside of 87.33%. Verizon Communications has a consensus price target of $55.93, indicating a potential downside of 3.60%. Given GTT Communications’ stronger consensus rating and higher probable upside, equities research analysts clearly believe GTT Communications is more favorable than Verizon Communications.

Summary

Verizon Communications beats GTT Communications on 10 of the 17 factors compared between the two stocks.

About GTT Communications

GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers worldwide. The company provides private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless access services; managed equipment and security services; and voice and unified communications services consisting of SIP trunking and enterprise PBX services. It also offers video transport services for the transmission of live events, sport, entertainment, and news to broadcasters and cable programming providers; and network access services. The company's IP network consists of approximately 600 points of presence. GTT Communications, Inc. markets its products and services through a network of direct sales force and indirect sales channels. The company was formerly known as Global Telecom & Technology, Inc. and changed its name to GTT Communications, Inc. in January 2014. GTT Communications, Inc. was founded in 2005 and is headquartered in McLean, Virginia.

About Verizon Communications

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company's Wireless segment provides wireless voice and data services; Internet access on various notebook computers and tablets; multimedia, business-focused, and location-based services, as well as international travel services; and network access services to deliver various Internet of Things products and services. This segment also provides wireless devices, including smartphones and basic phones, wearables, and tablets and other Internet access devices. As of December 31, 2017, it had 116.3 million retail connections. Its Wireline segment offers traditional circuit-based network products and services; networking solutions, comprising private Internet protocol (IP), Ethernet, and software-defined wide area network, as well as cyber security services; local exchange, regional, long distance, and toll-free calling services; voice messaging and conferencing services; and workforce productivity and customer contact center solutions, as well as residential fixed connectivity solutions, including Internet, TV, and voice services under the Fios brand name. This segment also provides premises equipment, as well as installation, maintenance, and site services; data, voice, local dial tone, and broadband services primarily to local, long distance, and wireless carriers; voice and networking products, Fios services, IP networking, voice solutions, security, and managed information technology services for small and medium businesses, state and local governments, and educational institutions; and security and managed network services. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is headquartered in New York, New York.

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