Verizon Communications (NYSE:VZ) and Axtel (OTCMKTS:AXTLF) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Volatility and Risk
Verizon Communications has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Axtel has a beta of -0.73, meaning that its stock price is 173% less volatile than the S&P 500.
Profitability
This table compares Verizon Communications and Axtel's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Verizon Communications | 14.76% | 32.15% | 6.87% |
Axtel | N/A | N/A | N/A |
Earnings & Valuation
This table compares Verizon Communications and Axtel's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Verizon Communications | $131.87 billion | 1.74 | $19.27 billion | $4.81 | 11.50 |
Axtel | N/A | N/A | N/A | N/A | N/A |
Verizon Communications has higher revenue and earnings than Axtel.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Verizon Communications and Axtel, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Verizon Communications | 0 | 13 | 6 | 1 | 2.40 |
Axtel | 0 | 0 | 0 | 0 | N/A |
Verizon Communications currently has a consensus target price of $61.8421, indicating a potential upside of 11.83%. Given Verizon Communications' higher possible upside, equities analysts plainly believe Verizon Communications is more favorable than Axtel.
Institutional & Insider Ownership
64.9% of Verizon Communications shares are held by institutional investors. 0.1% of Verizon Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Verizon Communications beats Axtel on 10 of the 10 factors compared between the two stocks.