Alaska Communications Systems Group (NASDAQ:ALSK) and Cincinnati Bell (NYSE:CBB) are both small-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional & Insider Ownership
34.0% of Alaska Communications Systems Group shares are owned by institutional investors. Comparatively, 98.7% of Cincinnati Bell shares are owned by institutional investors. 6.9% of Alaska Communications Systems Group shares are owned by company insiders. Comparatively, 2.4% of Cincinnati Bell shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Alaska Communications Systems Group and Cincinnati Bell’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alaska Communications Systems Group||1.64%||3.55%||1.21%|
Volatility & Risk
Alaska Communications Systems Group has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Cincinnati Bell has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Valuation and Earnings
This table compares Alaska Communications Systems Group and Cincinnati Bell’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alaska Communications Systems Group||$232.47 million||0.38||$9.08 million||N/A||N/A|
|Cincinnati Bell||$1.38 billion||0.19||-$69.80 million||($1.11)||-4.63|
Alaska Communications Systems Group has higher earnings, but lower revenue than Cincinnati Bell.
This is a breakdown of recent recommendations for Alaska Communications Systems Group and Cincinnati Bell, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alaska Communications Systems Group||0||0||1||0||3.00|
Cincinnati Bell has a consensus price target of $7.50, suggesting a potential upside of 45.91%. Given Cincinnati Bell’s higher possible upside, analysts clearly believe Cincinnati Bell is more favorable than Alaska Communications Systems Group.
Alaska Communications Systems Group beats Cincinnati Bell on 8 of the 12 factors compared between the two stocks.
Alaska Communications Systems Group Company Profile
Alaska Communications Systems Group, Inc., through its subsidiaries, provides broadband telecommunication and managed information technology services to business, wholesale, and consumer customers in the United States. Its services include voice and broadband services; and managed IT services comprising remote network monitoring and support service, managed IT security and IT professional services, and long distance services primarily over its own terrestrial network to business and wholesale customers. The company's business customers comprise enterprises; federal, state, and local governments; and small and medium business. It also provides voice and broadband services to residential customers in residential homes and multi-dwelling units; voice and broadband origination and termination services to inter and intrastate carriers; and access and support services. The company markets and sells its products through direct sales channels. Alaska Communications Systems Group, Inc. was incorporated in 1998 and is based in Anchorage, Alaska.
Cincinnati Bell Company Profile
Cincinnati Bell Inc., together with its subsidiaries, provides diversified telecommunications and technology services to residential and business customers in the United States. It operates in two segments, Entertainment and Communications, and IT Services and Hardware. The Entertainment and Communications segment offers data services, including high-speed Internet access, data transport, and interconnection services, as well as metro-Ethernet products; and voice local services, as well as long distance, digital trunking, switched access, and other value-added services, such as caller identification, voicemail, call waiting, and call return. This segment also provides video services comprising entertainment channels, including digital music, local, movie, and sports programming with high-definition (HD) channels, parental controls, HD DVR, and video on-demand. In addition, this segment undertakes wiring projects for business customers; and offers advertising, directory assistance, maintenance, and information services. The IT Services and Hardware segment provides consulting services consisting of IT staffing and project-based engagements, including engineering and installation of voice, connectivity and IT technologies, development of digital application solutions, and staff augmentation; and hosted solutions comprising converged IP communications platforms of data, voice, video, and mobility applications. This segment also offers cloud services, such as virtual data center, storage, and backup services; and monitoring and managing technology environments and applications, as well as sells, architects, and installs telecommunications and IT infrastructure equipment. The company was founded in 1873 and is headquartered in Cincinnati, Ohio.
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