Comparing Windstream (OTCMKTS:WINMQ) & Zayo Group (OTCMKTS:ZAYO)

Zayo Group (NYSE:ZAYO) and Windstream (OTCMKTS:WINMQ) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Valuation and Earnings

This table compares Zayo Group and Windstream’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zayo Group $2.60 billion 3.03 $101.90 million $0.61 54.98
Windstream $5.71 billion 0.00 -$723.00 million ($21.40) -0.01



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

Profitability

This table compares Zayo Group and Windstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zayo Group 5.06% 9.56% 1.42%
Windstream -52.19% N/A -6.78%

Institutional and Insider Ownership

92.7% of Zayo Group shares are held by institutional investors. Comparatively, 1.1% of Windstream shares are held by institutional investors. 4.5% of Zayo Group shares are held by insiders. Comparatively, 1.2% of Windstream shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Zayo Group has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Windstream has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Zayo Group and Windstream, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zayo Group 0 11 4 0 2.27
Windstream 0 0 0 0 N/A

Zayo Group currently has a consensus target price of $35.52, suggesting a potential upside of 5.90%. Given Zayo Group’s higher possible upside, research analysts plainly believe Zayo Group is more favorable than Windstream.

Summary

Zayo Group beats Windstream on 12 of the 13 factors compared between the two stocks.

Zayo Group Company Profile

Zayo Group Holdings, Inc., through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States, Canada, and Europe. The company operates in six segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation (zColo), Allstream, and Other. The Fiber Solutions segment provides dark fiber, and fiber-to-the-tower and small cell mobile infrastructure services for carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies, large enterprises, and other companies. The Transport segment offers lit bandwidth infrastructure solutions comprising wavelength, Ethernet, wholesale IP services, and SONET services through its metro, regional, and long-haul fiber networks for carriers, content providers, financial services companies, healthcare, government entities, education institutions, and other medium and large enterprises. The Enterprise Networks segment provides connectivity and telecommunications solutions comprising Internet, wide area networking products, managed products, and cloud based computing and storage offerings to medium and large enterprises. The Zayo Colocation (zColo) segment offers data center infrastructure solutions consisting of colocation space, and power and interconnection services to a range of enterprise, carrier, cloud, and content customers. The Allstream segment provides cloud VoIP and data solutions, such as voice offerings; and unified communications, as well as telecommunications services, including Ethernet, and IP/MPLS VPN solutions. The Other segment provides network and technical resources to customers in designing, acquiring, and maintaining their networks. Zayo Group Holdings, Inc. was founded in 2007 and is headquartered in Boulder, Colorado.

Windstream Company Profile

Windstream Holdings, Inc. provides network communications and technology solutions in the United States. Its Consumer & Small Business segment offers services, including traditional local and long-distance voice services, and high-speed Internet services; and value-added services, such as security and online back-up. It also offers consumer video services; premium broadband and video entertainment services under the Kinetic brand; voice and Web conferencing products; and advanced hosted-voice, network management, and business continuity services, as well as owns and operates cable television franchises. This segment serves approximately 1.4 million residential and small business customers. The company's Enterprise segment offers integrated voice and data services, which deliver voice and broadband services over a single Internet connection, data transport services, and multi-site networking services; and other data services comprising cloud computing, and collocation and managed services as an alternative to traditional information technology infrastructure. Its Wholesale segment provides network bandwidth to other telecommunications carriers, network operators, and content providers; fiber-to-the-tower connections to support the wireless backhaul market; voice and data carrier services to other communications providers and large scale purchasers; and special access services and time division multiplexing private line transport. The company's Consumer CLEC segment offers traditional voice and long-distance services, nationwide Internet access services, and dial-up and high-speed, as well as online backup and various email services. Windstream Holdings, Inc. also leases and sells broadband modems and home networking gateways; and sells computers and phones. The company was incorporated in 2013 and is based in Little Rock, Arkansas. On February 25, 2019, Windstream Holdings, Inc. along with its 202 affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York.

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