TELE2 (OTCMKTS: TLTZY) and Alaska Communications Systems Group (NASDAQ:ALSK) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
TELE2 has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Alaska Communications Systems Group has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500.
This table compares TELE2 and Alaska Communications Systems Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alaska Communications Systems Group||-2.69%||-2.95%||-0.98%|
Institutional & Insider Ownership
44.4% of Alaska Communications Systems Group shares are owned by institutional investors. 6.5% of Alaska Communications Systems Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares TELE2 and Alaska Communications Systems Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TELE2||$3.31 billion||1.72||-$229.35 million||$0.14||40.32|
|Alaska Communications Systems Group||$226.90 million||0.50||-$6.10 million||($0.11)||-19.82|
Alaska Communications Systems Group has lower revenue, but higher earnings than TELE2. Alaska Communications Systems Group is trading at a lower price-to-earnings ratio than TELE2, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for TELE2 and Alaska Communications Systems Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alaska Communications Systems Group||0||0||0||0||N/A|
TELE2 pays an annual dividend of $0.21 per share and has a dividend yield of 3.7%. Alaska Communications Systems Group does not pay a dividend. TELE2 pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
TELE2 beats Alaska Communications Systems Group on 9 of the 13 factors compared between the two stocks.
Tele2 AB (publ), a telecom operator, provides telecommunication services for residential and business customers. The company offers mobile voice telephony, handset data, messaging, and value-added services, such as handset insurance, antivirus, and content services; mobile broadband services; and fixed voice and broadband, TV, and fixed and mobile telephony services. It also provides business-to-business telecommunication services, such as secure and encrypted connections, company-specific mobile network access points, etc.; cloud services comprising voice switching, data center services, business productivity solutions, etc.; and data connectivity, Ethernet connectivity, VPN services, and international IP connectivity services, as well as IoT solutions. As of March 22, 2017, the company served approximately 17 million customers in 9 countries, including Sweden, Lithuania, Latvia, Estonia, the Netherlands, Kazakhstan, Croatia, Austria, and Germany, as well as internationally. Tele2 AB (publ) was founded in 1990 and is headquartered in Stockholm, Sweden.
About Alaska Communications Systems Group
Alaska Communications Systems Group, Inc. is a fiber broadband and managed information technology (IT) services provider. The Company is focused primarily on business and wholesale customers in and out of Alaska. The Company also provides telecommunication services to consumers across Alaska. The Company’s facilities-based communications network extends across Alaska and connects to the contiguous states through its undersea fiber optic cable systems and its usage rights on an undersea system. It serves customers in various areas, such as Business and Wholesale (broadband, voice and managed IT services); Consumer (broadband and voice services), and Other Services (including carrier termination, equipment sales, access services and support services receiving federal support funding). It provides voice and broadband services to residential customers. It provides voice and broadband origination and termination services to inter and intrastate carriers serving its retail customers.
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