Fusion Telecommunications International (NASDAQ:FSNN) and Swisscom (OTCMKTS:SCMWY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Institutional & Insider Ownership
16.3% of Fusion Telecommunications International shares are held by institutional investors. Comparatively, 0.1% of Swisscom shares are held by institutional investors. 19.1% of Fusion Telecommunications International shares are held by insiders. Comparatively, 1.0% of Swisscom shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Fusion Telecommunications International and Swisscom’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fusion Telecommunications International||$150.53 million||1.51||-$14.01 million||($1.09)||-2.65|
|Swisscom||$11.85 billion||2.02||$1.60 billion||$3.08||15.00|
Swisscom has higher revenue and earnings than Fusion Telecommunications International. Fusion Telecommunications International is trading at a lower price-to-earnings ratio than Swisscom, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Fusion Telecommunications International has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Swisscom has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.
This is a breakdown of current ratings for Fusion Telecommunications International and Swisscom, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fusion Telecommunications International||0||0||2||0||3.00|
Fusion Telecommunications International currently has a consensus target price of $6.50, indicating a potential upside of 124.91%. Given Fusion Telecommunications International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Fusion Telecommunications International is more favorable than Swisscom.
Swisscom pays an annual dividend of $1.47 per share and has a dividend yield of 3.2%. Fusion Telecommunications International does not pay a dividend. Swisscom pays out 47.7% of its earnings in the form of a dividend.
This table compares Fusion Telecommunications International and Swisscom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fusion Telecommunications International||-13.39%||-147.98%||-11.95%|
Swisscom beats Fusion Telecommunications International on 8 of the 15 factors compared between the two stocks.
About Fusion Telecommunications International
Fusion Connect, Inc. provides integrated cloud solutions to small, medium, and large businesses. Its proprietary service platform enables the integration of solutions in the cloud, including cloud voice and unified communications, contact center, cloud connectivity, and cloud computing, as well as additional cloud services, such as storage and security. The company serves associations, governments, contact centers, and healthcare and legal industries. Fusion Connect, Inc. is based in New York, New York.
Swisscom AG provides telecommunication services primarily in Switzerland and Italy. The company operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. It offers broadband, TV, fixed-network, and mobile phone subscription services, as well as national and international telephone, and data traffic services for residential customers, and small and medium-sized enterprises. The company also provides cloud, outsourcing, workplace, UCC, mobile phone, networking, business process optimization, SAP, Internet of Things, security and authentication, digital consulting, and software development solutions primarily for banking, hospital, and health insurance industries; fixed and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, it plans, operates, and maintains network infrastructure and related information technology (IT) systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband services, such as voice, data, and TV services, as well as video-on-demand for residential and corporate customers. Further, the company provides mobile phone services; IT and network services, and customized solutions; and online and telephone directories, as well as sells merchandise products. Additionally, it offers collection services for radio and TV license fees; radio and cross platform services for customers in the media field; and securitized radio transmissions services, as well as constructs and maintains wired and wireless networks. Swisscom AG was founded in 1998 and is headquartered in Worblaufen, Switzerland.
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