Critical Contrast: Lumos Networks Corp. (NASDAQ:LMOS) versus Vonage Holdings Corp. (VG)
Lumos Networks Corp. (NASDAQ: LMOS) and Vonage Holdings Corp. (NYSE:VG) are both small-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitabiliy, analyst recommendations and earnings.
Risk and Volatility
Lumos Networks Corp. has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Vonage Holdings Corp. has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500.
Institutional and Insider Ownership
85.7% of Lumos Networks Corp. shares are held by institutional investors. Comparatively, 78.1% of Vonage Holdings Corp. shares are held by institutional investors. 8.7% of Lumos Networks Corp. shares are held by insiders. Comparatively, 14.1% of Vonage Holdings Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Lumos Networks Corp. and Vonage Holdings Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lumos Networks Corp.||-1.39%||-2.29%||-0.42%|
|Vonage Holdings Corp.||1.63%||13.56%||6.23%|
This is a summary of current recommendations and price targets for Lumos Networks Corp. and Vonage Holdings Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lumos Networks Corp.||0||3||1||0||2.25|
|Vonage Holdings Corp.||0||0||6||0||3.00|
Lumos Networks Corp. currently has a consensus price target of $19.00, suggesting a potential upside of 6.09%. Vonage Holdings Corp. has a consensus price target of $8.25, suggesting a potential upside of 25.38%. Given Vonage Holdings Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe Vonage Holdings Corp. is more favorable than Lumos Networks Corp..
Valuation & Earnings
This table compares Lumos Networks Corp. and Vonage Holdings Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lumos Networks Corp.||$211.02 million||2.03||$83.68 million||N/A||N/A|
|Vonage Holdings Corp.||$972.14 million||1.50||$100.53 million||$0.06||109.68|
Vonage Holdings Corp. has higher revenue and earnings than Lumos Networks Corp..
Vonage Holdings Corp. beats Lumos Networks Corp. on 9 of the 13 factors compared between the two stocks.
Lumos Networks Corp. Company Profile
Lumos Networks Corp. is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region with a network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company serves carrier, business and residential customers over its fiber network offering data, voice and Internet protocol (IP) services. The Company operates through three segments: Data, Residential and Small Business (R&SB), and RLEC Access. The Data segment includes the Company’s enterprise data, transport and Fiber to the Cell (FTTC) product groups. The R&SB segment includes voice and IP services products targeted to its residential and small business customers. The RLEC Access segment provides other carrier customers access to the Company’s network within the Company’s rural local exchange carrier (RLEC) territories through switched access services.
Vonage Holdings Corp. Company Profile
Vonage Holdings Corp. is a provider of cloud communications services for businesses and consumers, and consumer and communication solutions across multiple devices. The Company operates through two segments: Business and Consumer. For business services customers, the Company provides cloud-based unified communications as a service (UCaaS) solutions, consisting of integrated voice, text, video, data, collaboration, and mobile applications over its scalable session initiation protocol (SIP) based voice over Internet protocol (VoIP) network. It serves a range of the business market, including the small and medium business (SMB), mid-market and enterprise segments. Through its cloud-based middleware solution, gUnify, the Company provides customers the ability to integrate its cloud communications platform with various cloud-based productivity and customer relationship management (CRM) solutions, including Google’s G Suite, Zendesk, Salesforce’s Sales Cloud, Oracle and Clio.
Receive News & Ratings for Lumos Networks Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lumos Networks Corp. and related companies with MarketBeat.com's FREE daily email newsletter.