Fusion Telecommunications International (NASDAQ:FSNN) and Windstream (NASDAQ:WIN) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Risk & Volatility
Fusion Telecommunications International has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Windstream has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.
This table compares Fusion Telecommunications International and Windstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fusion Telecommunications International||-13.39%||-147.98%||-11.95%|
This is a breakdown of current ratings and recommmendations for Fusion Telecommunications International and Windstream, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fusion Telecommunications International||0||0||2||0||3.00|
Fusion Telecommunications International currently has a consensus price target of $6.50, suggesting a potential upside of 161.04%. Windstream has a consensus price target of $5.08, suggesting a potential upside of 22.88%. Given Fusion Telecommunications International’s stronger consensus rating and higher probable upside, equities analysts plainly believe Fusion Telecommunications International is more favorable than Windstream.
Valuation and Earnings
This table compares Fusion Telecommunications International and Windstream’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fusion Telecommunications International||$150.53 million||1.30||-$14.01 million||($1.09)||-2.28|
|Windstream||$5.85 billion||0.03||-$2.12 billion||($8.15)||-0.51|
Fusion Telecommunications International has higher earnings, but lower revenue than Windstream. Fusion Telecommunications International is trading at a lower price-to-earnings ratio than Windstream, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
16.3% of Fusion Telecommunications International shares are owned by institutional investors. Comparatively, 60.4% of Windstream shares are owned by institutional investors. 19.1% of Fusion Telecommunications International shares are owned by company insiders. Comparatively, 1.2% of Windstream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Fusion Telecommunications International beats Windstream on 8 of the 13 factors compared between the two stocks.
Fusion Telecommunications International Company Profile
Fusion Connect, Inc. provides integrated cloud solutions to small, medium, and large businesses. Its proprietary service platform enables the integration of solutions in the cloud, including cloud voice and unified communications, contact center, cloud connectivity, and cloud computing, as well as additional cloud services, such as storage and security. The company serves associations, governments, contact centers, and healthcare and legal industries. Fusion Connect, Inc. is based in New York, New York.
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; video entertainment service 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, home networking gateways, and personal computers; and sells home phones. The company was incorporated in 2013 and is based in Little Rock, Arkansas.
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