Reviewing GTT Communications (OTCMKTS:GTTN) and Shenandoah Telecommunications (NASDAQ:SHEN)

GTT Communications (OTCMKTS:GTTN) and Shenandoah Telecommunications (NASDAQ:SHEN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Valuation and Earnings

This table compares GTT Communications and Shenandoah Telecommunications’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GTT Communications $1.73 billion 0.00 -$105.90 million N/A N/A
Shenandoah Telecommunications $220.77 million 7.07 $126.72 million $0.05 624.60

Shenandoah Telecommunications has lower revenue, but higher earnings than GTT Communications.

Institutional and Insider Ownership

45.8% of GTT Communications shares are held by institutional investors. Comparatively, 54.0% of Shenandoah Telecommunications shares are held by institutional investors. 46.4% of GTT Communications shares are held by company insiders. Comparatively, 4.1% of Shenandoah Telecommunications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for GTT Communications and Shenandoah Telecommunications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GTT Communications 0 0 0 0 N/A
Shenandoah Telecommunications 0 2 1 0 2.33

Shenandoah Telecommunications has a consensus target price of $43.00, suggesting a potential upside of 37.69%. Given Shenandoah Telecommunications’ higher possible upside, analysts clearly believe Shenandoah Telecommunications is more favorable than GTT Communications.

Profitability

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

Net Margins Return on Equity Return on Assets
GTT Communications N/A N/A N/A
Shenandoah Telecommunications 80.93% 1.29% 0.38%

Risk and Volatility

GTT Communications has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Shenandoah Telecommunications has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Summary

Shenandoah Telecommunications beats GTT Communications on 8 of the 11 factors compared between the two stocks.

GTT Communications Company Profile

GTT Communications, Inc. engages in the provision of cloud networking services to multinational clients. It offers broad portfolio of global services including private networking; Internet; optical transport; Software Defined Wide Area Networking; managed services; voice and unified communications; video transport; and access services. The company was founded by H. Brian Thompson on January 3, 2005 and is headquartered in McLean, VA.

Shenandoah Telecommunications Company Profile

Shenandoah Telecommunications Co. operates as a holding company, which engages in the provision of regulated and unregulated telecommunication services to end-user customers and other telecommunications providers. It offers voice, video and data communications services. It operates through the following segments: Wireless, Broadband and Tower. The Wireless segment provides digital wireless telephone and data network services. The Broadband segment provides broadband, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, and Kentucky, via fiber optic and hybrid fiber coaxial (“HFC“) cable. The Tower segment leases space on 225 owned cell towers. The company was founded in 1902 and is headquartered in Edinburg, VA.

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