Consolidated Communications (NASDAQ:CNSL) and Cincinnati Bell (NYSE:CBB) are both small-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Valuation & Earnings
This table compares Consolidated Communications 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 |
---|
Consolidated Communications | $1.34 billion | 0.31 | $-20,380,000.00 | N/A | N/A |
Cincinnati Bell | $1.54 billion | 0.50 | $-66,600,000.00 | ($1.13) | -13.52 |
Consolidated Communications has higher earnings, but lower revenue than Cincinnati Bell.
Analyst Ratings
This is a summary of current ratings and recommmendations for Consolidated Communications and Cincinnati Bell, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Consolidated Communications | 0 | 0 | 1 | 0 | 3.00 |
Cincinnati Bell | 0 | 2 | 0 | 0 | 2.00 |
Consolidated Communications presently has a consensus price target of $7.00, suggesting a potential upside of 33.08%. Cincinnati Bell has a consensus price target of $15.50, suggesting a potential upside of 1.44%. Given Consolidated Communications' stronger consensus rating and higher probable upside, equities research analysts clearly believe Consolidated Communications is more favorable than Cincinnati Bell.
Volatility & Risk
Consolidated Communications has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Cincinnati Bell has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
Profitability
This table compares Consolidated Communications and Cincinnati Bell's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Consolidated Communications | 2.90% | 11.62% | 1.26% |
Cincinnati Bell | -4.58% | N/A | -0.56% |
Insider & Institutional Ownership
67.9% of Consolidated Communications shares are owned by institutional investors. Comparatively, 96.4% of Cincinnati Bell shares are owned by institutional investors. 1.3% of Consolidated Communications shares are owned by company insiders. Comparatively, 1.8% of Cincinnati Bell shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Consolidated Communications beats Cincinnati Bell on 9 of the 13 factors compared between the two stocks.