Alaska Communications Systems Group (NASDAQ: ALSK) and Otelco (NASDAQ:OTT) are both small-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
This is a summary of recent ratings and recommmendations for Alaska Communications Systems Group and Otelco, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alaska Communications Systems Group||0||0||0||0||N/A|
This table compares Alaska Communications Systems Group and Otelco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alaska Communications Systems Group||-0.66%||-0.03%||-0.01%|
Volatility & Risk
Alaska Communications Systems Group has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, Otelco has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.
Institutional and Insider Ownership
44.6% of Alaska Communications Systems Group shares are owned by institutional investors. 6.5% of Alaska Communications Systems Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Alaska Communications Systems Group and Otelco’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alaska Communications Systems Group||$226.87 million||0.49||$2.38 million||($0.02)||-107.00|
Alaska Communications Systems Group has higher revenue and earnings than Otelco. Alaska Communications Systems Group is trading at a lower price-to-earnings ratio than Otelco, indicating that it is currently the more affordable of the two stocks.
Alaska Communications Systems Group Company Profile
Alaska Communications Systems Group, Inc. is a fiber broadband and managed information technology (IT) services provider. The Company is focused primarily on business and wholesale customers in and out of Alaska. The Company also provides telecommunication services to consumers across Alaska. The Company’s facilities-based communications network extends across Alaska and connects to the contiguous states through its undersea fiber optic cable systems and its usage rights on an undersea system. It serves customers in various areas, such as Business and Wholesale (broadband, voice and managed IT services); Consumer (broadband and voice services), and Other Services (including carrier termination, equipment sales, access services and support services receiving federal support funding). It provides voice and broadband services to residential customers. It provides voice and broadband origination and termination services to inter and intrastate carriers serving its retail customers.
Otelco Company Profile
Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. These services include local and long distance calling; network access to and from its customers; data transport; digital high-speed and dial-up Internet access; cable, satellite and Internet protocol television; wireless, and other telephone related services. The principal markets for these services are residential and business customers residing in and adjacent to the exchanges the Company serves in Alabama, Massachusetts, Maine, Missouri, Vermont and West Virginia. In addition, the Company serves business customers throughout Maine and New Hampshire and provides dial-up Internet service throughout the states of Maine and Missouri. In January 2014, the Company acquired Reliable Networks, a provider of cloud hosting and managed services for companies who rely on mission-critical applications.
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