PCCW (PCCWY) and Vonage (VG) Head-To-Head Contrast

PCCW (OTCMKTS: PCCWY) and Vonage (NYSE:VG) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares PCCW and Vonage’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PCCW $4.75 billion 0.93 $288.16 million N/A N/A
Vonage $1.00 billion 2.69 -$33.93 million $0.28 40.54

PCCW has higher revenue and earnings than Vonage.

Profitability

This table compares PCCW and Vonage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PCCW N/A N/A N/A
Vonage -1.51% 16.84% 9.19%

Dividends

PCCW pays an annual dividend of $0.50 per share and has a dividend yield of 8.7%. Vonage does not pay a dividend.

Institutional & Insider Ownership

0.0% of PCCW shares are owned by institutional investors. Comparatively, 85.2% of Vonage shares are owned by institutional investors. 8.7% of Vonage shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

PCCW has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Vonage has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for PCCW and Vonage, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PCCW 0 0 0 0 N/A
Vonage 0 2 8 0 2.80

Vonage has a consensus price target of $10.34, indicating a potential downside of 8.92%. Given Vonage’s higher probable upside, analysts clearly believe Vonage is more favorable than PCCW.

Summary

Vonage beats PCCW on 7 of the 12 factors compared between the two stocks.

PCCW Company Profile

PCCW Limited provides telecommunications and related services in Hong Kong, Macau, Mainland China, and internationally. The company's services include local telephony, local data and broadband, mobile and international telecommunications, and satellite-based and network-based telecommunications services; and outsourcing, consulting, and contact center services. It also provides technical support, electronics communications engineering, and products and solutions, as well as free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; and sells mobile handsets and accessories. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, content for various media, and outsourced call center and data center services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products; supply of broadband Internet access solutions and Web services; provision of data services, and; software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; logistics, printing, business process, and ICT solutions; property investment, development, management, and leasing activities; and ski operations. Additionally, the company offers Internet portal digital media entertainment platform; technical consultancy services; multi-platform digital music services; and infrastructure construction, application, and specific business process outsourcing services, as well as cloud computing solutions. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.

Vonage Company Profile

Vonage Holdings Corp. provides communications services connecting people through cloud-connected devices worldwide. It offers various business services, including basic dial tone, call queue, conferencing, call groups, mobile functionality, CRM integration, and detailed analytics, as well as Vonage Business Cloud and Vonage Enterprise services. The company also provides home telephone services through various service plans with basic features, such as voicemail, call waiting, call forwarding, simulring, visual voicemail, and extensions, as well as area code selection, virtual phone number, and Web-enabled voicemail. Its primary home telephone offerings include Vonage World plan that offers unlimited domestic calling; calling to landline phones in approximately 60 countries; and calling to mobile phones in various countries, as well as Vonage North America plan for unlimited calling across the United States, Canada, Mexico, and Puerto Rico. In addition, the company provides Vonage-enabled devices, which allow customers to use the Internet connection for their computer and telephones at the same time; and high-speed broadband Internet service that allows calls over the Internet either from a telephone through a Vonage-enabled device, or through soft phone software, or mobile client applications. It sells its products through its sales agents, Websites, toll free numbers, and retailers for consumers and businesses in the United States, the United Kingdom, and Canada. As of December 31, 2017, it had approximately 2.2 million consumer subscriber lines and business seats. The company was incorporated in 2000 and is headquartered in Holmdel, New Jersey.

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