Alaska Communications Systems Group (NASDAQ: ALSK) and TELE2 (OTCMKTS:TLTZY) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
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.
This table compares Alaska Communications Systems Group and TELE2’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alaska Communications Systems Group||-2.69%||-2.96%||-1.00%|
Valuation & Earnings
This table compares Alaska Communications Systems Group and TELE2’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alaska Communications Systems Group||$226.90 million||0.47||-$6.10 million||($0.11)||-18.55|
|TELE2||$3.31 billion||1.72||-$229.35 million||$0.14||40.32|
Alaska Communications Systems Group has higher earnings, but lower revenue 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 breakdown of current ratings and price targets for Alaska Communications Systems Group and TELE2, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alaska Communications Systems Group||0||0||0||0||N/A|
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.
Risk & Volatility
Alaska Communications Systems Group has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, TELE2 has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
TELE2 beats Alaska Communications Systems Group on 8 of the 12 factors compared between the two stocks.
Alaska Communications Systems Group Company Profile
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.
TELE2 Company Profile
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.
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