Spok (NASDAQ:SPOK – Get Free Report) and Liberty Latin America (NASDAQ:LILA – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Volatility & Risk
Spok has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Institutional and Insider Ownership
50.8% of Spok shares are owned by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are owned by institutional investors. 7.4% of Spok shares are owned by company insiders. Comparatively, 12.0% of Liberty Latin America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spok | 0 | 0 | 1 | 1 | 3.50 |
| Liberty Latin America | 2 | 0 | 1 | 0 | 1.67 |
Spok presently has a consensus target price of $20.00, suggesting a potential upside of 53.55%. Liberty Latin America has a consensus target price of $9.75, suggesting a potential upside of 12.52%. Given Spok’s stronger consensus rating and higher probable upside, research analysts plainly believe Spok is more favorable than Liberty Latin America.
Earnings & Valuation
This table compares Spok and Liberty Latin America”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Spok | $139.74 million | 1.92 | $14.97 million | $0.80 | 16.28 |
| Liberty Latin America | $4.46 billion | 0.39 | -$657.00 million | ($3.69) | -2.35 |
Spok has higher earnings, but lower revenue than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Spok, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Spok and Liberty Latin America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spok | 11.88% | 10.95% | 7.90% |
| Liberty Latin America | -16.57% | -54.11% | -5.95% |
Summary
Spok beats Liberty Latin America on 11 of the 14 factors compared between the two stocks.
About Spok
Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides healthcare communication solutions in the United States, Europe, Canada, Australia, Asia, and the Middle East. The company's products and services enhance workflows for clinicians and support administrative compliance. It delivers clinical information to care teams when and where it matters to enhance patient outcomes; and provides GenA Pager, a one-way alphanumeric pager. The company offers subscriptions to one-way or two-way messaging services, as well as alphanumeric pagers that are configurable to support unencrypted or encrypted operation; and ancillary services, such as voicemail, and equipment loss or maintenance protection services, as well as sells devices to resellers who lease or resell them to their subscribers. Its Spok Care Connect suite products for contact centers, clinical alerting and notification, mobile communications and messaging, and public safety notifications. In addition, the company provides professional, software license updates, and product support services, as well as sells third-party equipment. It serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. Spok Holdings, Inc. was founded in 1986 and is headquartered in Alexandria, Virginia.
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.
Receive News & Ratings for Spok Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Spok and related companies with MarketBeat.com's FREE daily email newsletter.
