PLDT (OTCMKTS:PHTCF – Get Free Report) and Shenandoah Telecommunications (NASDAQ:SHEN – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
32.2% of PLDT shares are held by institutional investors. Comparatively, 62.0% of Shenandoah Telecommunications shares are held by institutional investors. 5.0% of Shenandoah Telecommunications shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares PLDT and Shenandoah Telecommunications”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PLDT | N/A | N/A | N/A | $159.32 | 0.11 |
| Shenandoah Telecommunications | $357.85 million | 2.07 | -$39.39 million | ($0.78) | -17.17 |
PLDT has higher earnings, but lower revenue than Shenandoah Telecommunications. Shenandoah Telecommunications is trading at a lower price-to-earnings ratio than PLDT, indicating that it is currently the more affordable of the two stocks.
Dividends
PLDT pays an annual dividend of $128.17 per share and has a dividend yield of 706.2%. Shenandoah Telecommunications pays an annual dividend of $0.11 per share and has a dividend yield of 0.8%. PLDT pays out 80.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shenandoah Telecommunications pays out -14.1% of its earnings in the form of a dividend. Shenandoah Telecommunications has increased its dividend for 3 consecutive years.
Profitability
This table compares PLDT and Shenandoah Telecommunications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PLDT | N/A | N/A | N/A |
| Shenandoah Telecommunications | -10.83% | -4.54% | -2.07% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for PLDT and Shenandoah Telecommunications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PLDT | 0 | 0 | 0 | 0 | 0.00 |
| Shenandoah Telecommunications | 1 | 0 | 2 | 0 | 2.33 |
Shenandoah Telecommunications has a consensus price target of $27.50, suggesting a potential upside of 105.29%. Given Shenandoah Telecommunications’ stronger consensus rating and higher probable upside, analysts plainly believe Shenandoah Telecommunications is more favorable than PLDT.
Summary
Shenandoah Telecommunications beats PLDT on 8 of the 14 factors compared between the two stocks.
About PLDT
PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.
About Shenandoah Telecommunications
Shenandoah Telecommunications Company, together with its subsidiaries, provides a range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States. It operates in two segments, Broadband and Tower. The company Broadband segment offers broadband, video, and voice services to residential and commercial customers in Virginia, West Virginia, Maryland, Pennsylvania, and Kentucky through hybrid fiber coaxial cable under the Shentel brand; and fiber optic services under the Glo Fiber brand name. This segment also leases dark fiber and provides Ethernet and wavelength fiber optic services to enterprise and wholesale customers under the Glo Fiber Enterprise and Glo Fiber Wholesale brand names; and provides voice data and DSL telephone services. The Tower segment owns macro cellular towers and leases colocation space to the wireless communications providers. Shenandoah Telecommunications Company was founded in 1902 and is based in Edinburg, Virginia.
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