Head-To-Head Survey: Liberty Latin America (NASDAQ:LILA) versus Nuvera Communications (OTCMKTS:NUVR)

Nuvera Communications (OTCMKTS:NUVR) and Liberty Latin America (NASDAQ:LILA) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings for Nuvera Communications and Liberty Latin America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvera Communications	0	0	0	0	0.00
Liberty Latin America	1	2	0	1	2.25

Liberty Latin America has a consensus price target of $6.50, suggesting a potential upside of 13.84%. Given Liberty Latin America’s stronger consensus rating and higher possible upside, analysts clearly believe Liberty Latin America is more favorable than Nuvera Communications.

Profitability

This table compares Nuvera Communications and Liberty Latin America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvera Communications	-5.89%	0.87%	0.31%
Liberty Latin America	-17.85%	-44.60%	-6.19%

Institutional and Insider Ownership

13.4% of Nuvera Communications shares are held by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are held by institutional investors. 13.8% of Nuvera Communications shares are held by company insiders. Comparatively, 12.0% of Liberty Latin America shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Nuvera Communications and Liberty Latin America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvera Communications	$69.24 million	0.83	-$4.43 million	($0.77)	-14.29
Liberty Latin America	$4.46 billion	0.26	-$657.00 million	($4.03)	-1.42

Nuvera Communications has higher earnings, but lower revenue than Liberty Latin America. Nuvera Communications is trading at a lower price-to-earnings ratio than Liberty Latin America, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Nuvera Communications has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

About Nuvera Communications

Nuvera Communications, Inc. operates as a diversified communications company in the United States. The company offers broadband Internet access and voice over Internet protocol (VoIP) phone services; voice services to make and receive telephone calls within a defined local calling area; and network access services to other communication carriers for the use of its facilities to terminate or originate long distance calls on its fiber network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; data services for business and residential customers; email and managed services comprising web hosting and design, online file back up, and online file storage; directory assistance, operator service, and long-distance private lines; directory publishing, bill processing, and other customer services; and fiber-delivered communications and managed information technology solutions, as well as sells and services customer premise equipment. In addition, the company is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systems. The company serves communities in Minnesota and Iowa through customer service call centers, its website, and commissioned sales representatives. The company was formerly known as New Ulm Telecom, Inc. and changed its name to Nuvera Communications, Inc. in June 2018. Nuvera Communications, Inc. was incorporated in 1905 and is headquartered in New Ulm, Minnesota.

About Liberty Latin America

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.