Reviewing Consolidated Communications (CNSL) and pdvWireless (PDVW)

pdvWireless (NASDAQ:PDVW) and Consolidated Communications (NASDAQ:CNSL) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Valuation and Earnings

This table compares pdvWireless and Consolidated Communications’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
pdvWireless $6.36 million 89.73 -$24.56 million ($2.33) -16.62
Consolidated Communications $1.40 billion 0.29 -$50.83 million ($0.42) -13.57

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

Analyst Ratings

This is a summary of current ratings and target prices for pdvWireless and Consolidated Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
pdvWireless 0 0 1 0 3.00
Consolidated Communications 1 1 1 0 2.00

Consolidated Communications has a consensus price target of $6.00, indicating a potential upside of 5.26%. Given Consolidated Communications’ higher probable upside, analysts plainly believe Consolidated Communications is more favorable than pdvWireless.

Risk and Volatility

pdvWireless has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Consolidated Communications has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

89.5% of pdvWireless shares are owned by institutional investors. Comparatively, 70.8% of Consolidated Communications shares are owned by institutional investors. 12.4% of pdvWireless shares are owned by insiders. Comparatively, 3.1% of Consolidated Communications shares are owned by 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.

Profitability

This table compares pdvWireless and Consolidated Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
pdvWireless -591.27% -16.82% -15.77%
Consolidated Communications -3.63% -5.80% -0.79%

Dividends

Consolidated Communications pays an annual dividend of $1.55 per share and has a dividend yield of 27.2%. pdvWireless does not pay a dividend. Consolidated Communications pays out -369.0% of its earnings in the form of a dividend.

Summary

Consolidated Communications beats pdvWireless on 10 of the 15 factors compared between the two stocks.

pdvWireless Company Profile

pdvWireless, Inc., a wireless communication company, provides network and mobile communication solutions to infrastructure and enterprise customers primarily in the United States. It offers TeamConnect service, which combines pdvConnect, a proprietary suite of mobile communication and workforce management applications with digital network architecture and mobile devices supplied by Motorola Solutions, Inc. The company's mobile communication and workforce management solutions enable businesses to locate and communicate with their field workers, as well as enhance the documentation of work events and job status. pdvWireless, Inc. primarily markets its TeamConnect services to customers indirectly through third-party dealers, with sales, marketing, and advertising support from its internal sales and marketing team. The company was formerly known as Pacific DataVision, Inc. and changed its name to pdvWireless, Inc. in November 2015. pdvWireless, Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.

Consolidated Communications Company Profile

Consolidated Communications Holdings, Inc. provides business and broadband communications services. It provides integrated communication services in consumer, commercial and carrier channels in California, Illinois, Iowa, Kansas, Minnesota, Missouri, North Dakota, Pennsylvania, South Dakota, Texas and Wisconsin. The firm offers communication solutions including: high-speed Internet, data, digital television, phone, managed and cloud services and wireless backhaul over a fiber optic network. The company was founded by Iverson A. Lumpkin on August 10, 1894 and is headquartered in Mattoon, IL.

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