Shenandoah Telecommunications (SHEN) vs. Multiband Corp (MBND) Critical Survey

Shenandoah Telecommunications (NASDAQ: SHEN) and Multiband Corp (NASDAQ:MBND) are both small-cap wired telecommunications carriers companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares Shenandoah Telecommunications and Multiband Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shenandoah Telecommunications 0.91% 4.04% 0.83%
Multiband Corp N/A N/A N/A

Volatility & Risk

Shenandoah Telecommunications has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Multiband Corp has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares Shenandoah Telecommunications and Multiband Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Shenandoah Telecommunications $535.29 million 3.14 -$890,000.00 $0.11 310.00
Multiband Corp N/A N/A N/A $0.20 N/A

Multiband Corp has higher revenue, but lower earnings than Shenandoah Telecommunications. Multiband Corp is trading at a lower price-to-earnings ratio than Shenandoah Telecommunications, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

49.4% of Shenandoah Telecommunications shares are held by institutional investors. 7.2% of Shenandoah Telecommunications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Shenandoah Telecommunications pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. Multiband Corp does not pay a dividend. Shenandoah Telecommunications pays out 236.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Shenandoah Telecommunications and Multiband Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shenandoah Telecommunications 0 0 1 0 3.00
Multiband Corp 0 0 0 0 N/A

Shenandoah Telecommunications presently has a consensus target price of $35.00, indicating a potential upside of 2.64%.

Summary

Shenandoah Telecommunications beats Multiband Corp on 8 of the 11 factors compared between the two stocks.

Shenandoah Telecommunications Company Profile

Shenandoah Telecommunications Company is a telecommunications holding company. The Company’s segments are Wireless, Cable, Wireline and Other. The Company, through its operating subsidiaries, provides both regulated and unregulated telecommunications services to end user customers and other telecommunications providers in Virginia, West Virginia, central Pennsylvania, western Maryland, and portions of Kentucky and Ohio. The business of the Wireless segment is conducted principally by the Company’s subsidiary, Shenandoah Personal Communications, LLC (PCS). The business of the Company’s Cable segment is conducted through Shenandoah Cable Television, LLC (Shenandoah Cable). The Wireline segment provides regulated and unregulated voice services, digital subscriber line (DSL) Internet access, cable modem and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia.

Multiband Corp Company Profile

Multiband Corporation provides contract installation services for the pay television industry (including satellite and broadband cable operators), Internet providers and retailers, voice, data and video services to residents of multi-dwelling units. It operates in three segments: Field Services (FS), where the Company provides installation services to pay television (satellite and broadband cable) providers, Internet providers and commercial customers; Multi-Dwelling Unit (MDU), where the Company bills voice, Internet and video services to subscribers as owner/operator and also acts as a master service operator for DIRECTV, receiving net cash payments for managing video subscribers through its network of system operators, and Engineering, Energy & Construction (EE&C) where the Company provides engineering and construction services for the wired and wireless telecommunications industry, including public safety networks. In August 2013, Goodman Networks Inc acquired the Company.

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