Critical Review: Centurylink (CTL) & Maxcom Telecomunic (MXMTY)

Centurylink (NYSE:CTL) and Maxcom Telecomunic (OTCMKTS:MXMTY) are both 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.

Risk and Volatility

Centurylink has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Maxcom Telecomunic has a beta of -2.23, suggesting that its stock price is 323% less volatile than the S&P 500.

Valuation & Earnings

This table compares Centurylink and Maxcom Telecomunic’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centurylink $17.66 billion 0.86 $1.39 billion $1.47 9.60
Maxcom Telecomunic $119.60 million 0.24 $120,000.00 N/A N/A

Centurylink has higher revenue and earnings than Maxcom Telecomunic.

Dividends

Centurylink pays an annual dividend of $2.16 per share and has a dividend yield of 15.3%. Maxcom Telecomunic does not pay a dividend. Centurylink pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

75.5% of Centurylink shares are owned by institutional investors. 0.6% of Centurylink 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 Centurylink and Maxcom Telecomunic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centurylink 7.81% 4.45% 1.38%
Maxcom Telecomunic -18.41% -29.29% -8.47%

Analyst Ratings

This is a summary of current ratings and target prices for Centurylink and Maxcom Telecomunic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centurylink 5 2 5 0 2.00
Maxcom Telecomunic 0 0 0 0 N/A

Centurylink presently has a consensus price target of $20.13, indicating a potential upside of 42.70%. Given Centurylink’s higher probable upside, equities analysts plainly believe Centurylink is more favorable than Maxcom Telecomunic.

Summary

Centurylink beats Maxcom Telecomunic on 12 of the 13 factors compared between the two stocks.

Centurylink Company Profile

CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers primarily in the United States. It operates in two segments, Business and Consumer. The company offers virtual private network data network services; Ethernet services; Internet protocol services; CenturyLink Prism TV that allows customers to watch television or cable channels and record up to four shows on one home digital video recorder; and Vyvx, which provides audio and video feeds over fiber or satellite for broadcast and production customers, as well as satellite digital television services. It also provides broadband services, which allow customers to connect to the Internet through their existing telephone lines or fiber-optic cables; private line solution for transmission of data between sites; colocation and data center services comprising cloud, hosting, and application management solutions; wavelength services that provide customers required bandwidth with an end-to-end transport solution of a bandwidth; and network security solutions, as well as sells telecommunications equipment and resells software, and provides network management, installation and maintenance of data equipment, and building of fiber-optic broadband networks. In addition, the company offers local calling services; long-distance and toll-free services; information technology (IT) services, such as transporting and delivering enterprise data and applications; and managed services consisting of network, hosting, cloud, and IT services. Further, it leases and subleases space in its office buildings, warehouses, and other properties. As of December 31, 2017, the company operated approximately 10.3 million total access lines; and served approximately 5.7 million broadband subscribers. CenturyLink, Inc. was founded in 1968 and is based in Monroe, Louisiana.

Maxcom Telecomunic Company Profile

Maxcom Telecomunicaciones S.A.B. de C.V. provides telecommunication services in Mexico. Its solutions include dedicated Internet; L2L, a service through a point-to-point circuit to create private networks by interconnecting two client addressing within the same local area; MPLS B-TIC service that allows the integration of IP traffic, including voice, data, or video in the same connection; 01800, a long distance service; and SIP TRUNKS, a voice over IP solution. The company serves various sectors in hospitality and health, finance, call center, education, government, retail, manufacture, and building, as well as other companies. Maxcom Telecomunicaciones S.A.B. de C.V. was founded in 1996 and is based in Mexico City, Mexico.

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