Contrasting Towerstream (TWER) & SBA Communications Corporation (SBAC)
SBA Communications Corporation (NASDAQ: SBAC) and Towerstream (NASDAQ:TWER) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitabiliy, earnings, institutional ownership and risk.
Earnings & Valuation
This table compares SBA Communications Corporation and Towerstream’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SBA Communications Corporation||$1.66 billion||9.93||$1.07 billion||$0.49||277.37|
|Towerstream||$26.73 million||0.06||-$1.17 million||($8.58)||-0.01|
SBA Communications Corporation has higher revenue and earnings than Towerstream. Towerstream is trading at a lower price-to-earnings ratio than SBA Communications Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for SBA Communications Corporation and Towerstream, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SBA Communications Corporation||0||4||11||0||2.73|
SBA Communications Corporation presently has a consensus target price of $136.54, indicating a potential upside of 0.46%. Given SBA Communications Corporation’s higher possible upside, analysts clearly believe SBA Communications Corporation is more favorable than Towerstream.
Risk and Volatility
SBA Communications Corporation has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Towerstream has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership
96.2% of SBA Communications Corporation shares are owned by institutional investors. Comparatively, 13.4% of Towerstream shares are owned by institutional investors. 2.1% of SBA Communications Corporation shares are owned by company insiders. Comparatively, 4.5% of Towerstream shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares SBA Communications Corporation and Towerstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SBA Communications Corporation||3.69%||-2.23%||0.53%|
SBA Communications Corporation beats Towerstream on 9 of the 12 factors compared between the two stocks.
About SBA Communications Corporation
SBA Communications Corporation is an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications. The Company’s operating segments include site leasing and site development. The site leasing business includes segments, domestic site leasing and international site leasing. The Company’s primary business line is its site leasing business. In its site leasing business, the Company leases antenna space to wireless service providers on towers that it owns or operates, and manages rooftop and tower sites for property owners under various contractual arrangements. The Company owns approximately 25,460 towers. It also manages or leases approximately 5,500 actual or potential towers. The Company’s other business line is its site development business, through which it assists wireless service providers in developing and maintaining their own wireless service networks.
Towerstream Corporation is a provider of fixed wireless services to businesses in over 10 urban markets across the United States. The Company operates through Fixed Wireless Services (Fixed Wireless) segment. Its fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. Towerstream installs equipment on the rooftops of the buildings in which the Fixed Wireless segment customers operate and refer to these as Customer Locations. This equipment includes receivers and antennas, and a wireless connection is established between the Customer Location to one or more of its points of presence (PoPs). It provides fixed wireless broadband services to commercial customers and delivers access over a Wireless network transmitting over both regulated and unregulated radio spectrum. It provides services to business customers in various locations, including New York City, Boston, Chicago and Houston.
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