Towerstream (TWER) & Crown Castle International (CCI) Financial Survey

Towerstream (OTCMKTS: TWER) and Crown Castle International (NYSE:CCI) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Institutional and Insider Ownership

87.0% of Crown Castle International shares are held by institutional investors. 6.4% of Towerstream shares are held by company insiders. Comparatively, 0.4% of Crown Castle International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Towerstream and Crown Castle International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Towerstream $26.90 million 0.06 -$20.43 million ($83.18) -0.05
Crown Castle International $3.92 billion 11.68 $356.97 million $1.20 93.93

Crown Castle International has higher revenue and earnings than Towerstream. Towerstream is trading at a lower price-to-earnings ratio than Crown Castle International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Towerstream and Crown Castle International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Towerstream 0 0 0 0 N/A
Crown Castle International 0 7 8 0 2.53

Crown Castle International has a consensus price target of $109.41, indicating a potential downside of 2.94%. Given Crown Castle International’s higher possible upside, analysts clearly believe Crown Castle International is more favorable than Towerstream.

Volatility & Risk

Towerstream has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Crown Castle International has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500.

Dividends

Crown Castle International pays an annual dividend of $3.80 per share and has a dividend yield of 3.4%. Towerstream does not pay a dividend. Crown Castle International pays out 316.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Towerstream has increased its dividend for 2 consecutive years.

Profitability

This table compares Towerstream and Crown Castle International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Towerstream -53.20% N/A -51.49%
Crown Castle International 11.35% 5.93% 2.05%

Summary

Crown Castle International beats Towerstream on 12 of the 15 factors compared between the two stocks.

About Towerstream

Towerstream Corporation is a provider of fixed wireless services to businesses in over 10 urban markets across the United States. The Company operates through Fixed Wireless Services (Fixed Wireless) segment. Its fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. Towerstream installs equipment on the rooftops of the buildings in which the Fixed Wireless segment customers operate and refer to these as Customer Locations. This equipment includes receivers and antennas, and a wireless connection is established between the Customer Location to one or more of its points of presence (PoPs). It provides fixed wireless broadband services to commercial customers and delivers access over a Wireless network transmitting over both regulated and unregulated radio spectrum. It provides services to business customers in various locations, including New York City, Boston, Chicago and Houston.

About Crown Castle International

Castle International Corp. (CCIC) is a real estate investment trust (REIT) company. The Company owns, operates and leases shared wireless infrastructure, including towers and other structures, such as rooftops (towers), and to a lesser extent, distributed antenna systems (DAS), a type of small cell network (small cells), and interests in land under third party towers in various forms (third party land interests). Its core business is renting space or physical capacity (collectively, space) on its towers, DAS and, to a lesser extent, third party land interests (collectively, site rental business) through long-term contracts in various forms, including license, sublease and lease agreements (collectively, contracts). The Company owned, leased or managed approximately 39,600 towers in the United States, including Puerto Rico, and approximately 1,700 towers in Australia.

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