Shenandoah Telecommunications (NASDAQ:SHEN) and GTT Communications (NYSE:GTT) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.
Earnings & Valuation
This table compares Shenandoah Telecommunications and GTT Communications’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shenandoah Telecommunications||$611.99 million||3.84||$66.39 million||$0.26||182.62|
|GTT Communications||$827.90 million||1.72||-$71.50 million||$0.24||108.63|
Insider & Institutional Ownership
46.5% of Shenandoah Telecommunications shares are owned by institutional investors. Comparatively, 84.7% of GTT Communications shares are owned by institutional investors. 6.8% of Shenandoah Telecommunications shares are owned by insiders. Comparatively, 23.0% of GTT Communications shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Shenandoah Telecommunications and GTT Communications, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shenandoah Telecommunications currently has a consensus price target of $50.00, indicating a potential upside of 5.31%. GTT Communications has a consensus price target of $48.44, indicating a potential upside of 85.82%. Given GTT Communications’ stronger consensus rating and higher possible upside, analysts plainly believe GTT Communications is more favorable than Shenandoah Telecommunications.
Shenandoah Telecommunications pays an annual dividend of $0.27 per share and has a dividend yield of 0.6%. GTT Communications does not pay a dividend. Shenandoah Telecommunications pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shenandoah Telecommunications has raised its dividend for 6 consecutive years.
Volatility and Risk
Shenandoah Telecommunications has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, GTT Communications has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
This table compares Shenandoah Telecommunications and GTT Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Shenandoah Telecommunications beats GTT Communications on 9 of the 17 factors compared between the two stocks.
About Shenandoah Telecommunications
Shenandoah Telecommunications Company, through its subsidiaries, provides regulated and unregulated telecommunications services to customers and other telecommunications providers in central and western Virginia, south-central Pennsylvania, West Virginia, Maryland, North Carolina, Kentucky, Tennessee, and Ohio. It offers integrated voice, video, and data communications services. The company operates in three segments: Wireless, Cable, and Wireline. The Wireless segment provides digital wireless mobile services; and wireless mobility communications network products and services. As of December 31, 2017, it owned 192 cell site towers built on leased land and owned land; and leases space on towers to third party wireless service providers. The Cable segment offers video, Internet, and voice services in Virginia, West Virginia, and western Maryland; and leases fiber optic facilities. The Wireline segment provides regulated and unregulated voice services, DSL Internet access, and long distance access services in Shenandoah County, as well as portions of Rockingham, Frederick, Warren, and Augusta counties in Virginia; video services in portions of Shenandoah County; and leases fiber optic facilities in the northern Shenandoah Valley of Virginia, northern Virginia, and adjacent areas along the Interstate 81 corridor. The company offers its products and services under the Sprint and Shentel brands. Shenandoah Telecommunications Company was founded in 1902 and is headquartered in Edinburg, Virginia.
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.
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