Critical Review: Windstream (OTCMKTS:WINMQ) and BT Group (OTCMKTS:BT)

Windstream (OTCMKTS:WINMQ) and BT Group (NYSE:BT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Volatility & Risk

Windstream has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, BT Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Insider & Institutional Ownership

1.1% of Windstream shares are held by institutional investors. Comparatively, 1.0% of BT Group shares are held by institutional investors. 1.2% of Windstream shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

BT Group pays an annual dividend of $0.56 per share and has a dividend yield of 4.3%. Windstream does not pay a dividend. BT Group pays out 44.1% of its earnings in the form of a dividend. BT Group has increased its dividend for 7 consecutive years.

Earnings & Valuation

This table compares Windstream and BT Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Windstream $5.71 billion 0.00 -$723.00 million ($21.40) -0.01
BT Group $27.71 billion 0.94 $2.83 billion $1.27 10.35

BT Group has higher revenue and earnings than Windstream. Windstream is trading at a lower price-to-earnings ratio than BT Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Windstream and BT Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Windstream 0 0 0 0 N/A
BT Group 0 4 4 0 2.50

Profitability

This table compares Windstream and BT Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Windstream -52.19% N/A -6.78%
BT Group N/A N/A N/A

Summary

BT Group beats Windstream on 11 of the 14 factors compared between the two stocks.

About Windstream

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; premium broadband and video entertainment services 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 and home networking gateways; and sells computers and phones. The company was incorporated in 2013 and is based in Little Rock, Arkansas. On February 25, 2019, Windstream Holdings, Inc. along with its 202 affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York.

About BT Group

BT Group plc provides communications services worldwide. Its Consumer segment sells telephones, baby monitors, and Wi-Fi extenders through high street retailers, online BT Shop, and Website BT.com; and offers home phone, copper and fiber broadband, TV, and mobile services in various packages. The company's EE segment offers 2G, 3G, and 4G mobile network services; broadband, fixed-voice, and TV services; and postpaid and prepaid plans, and emergency services network. This segment also sells 4G mobile phones, tablets, connected devices, and mobile broadband devices from various manufacturers. Its Business and Public Sector segment provides fixed voice, mobility, fiber and connectivity, and networked IT services to retailers, utilities, public sector, healthcare, sports, construction, finance, and educational sectors. The company's Global Services segment offers business communications and ICT services comprising BT Connect, BT Security, BT One, BT Contact, BT Compute, BT Advise, and BT for financial markets. This segment serves approximately 5,500 customers in 180 countries. Its Wholesale and Ventures segment enables communications providers and other organizations to provide fixed or mobile phone services. Its ventures provide mass-market services, such as directory enquiries and payphones; and enterprise services comprising BT Fleet and BT Redcare. This segment also provides broadband and Ethernet, voice, hosted communication, mobile virtual network operator, managed solutions, machine-to-machine, roaming, and media services. The company's Openreach segment engages in the provision of services over the local access network; and installation and maintenance of fiber and copper communications networks that connect homes and businesses. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.

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