Lumos Networks Corp. (NASDAQ: LMOS) and Partner Communications (NASDAQ:PTNR) are both small-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitabiliy, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lumos Networks Corp. and Partner Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lumos Networks Corp. 0 3 1 0 2.25
Partner Communications 0 0 1 0 3.00

Lumos Networks Corp. presently has a consensus price target of $19.00, suggesting a potential upside of 6.15%. Partner Communications has a consensus price target of $16.00, suggesting a potential upside of 219.36%. Given Partner Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Partner Communications is more favorable than Lumos Networks Corp..

Risk & Volatility

Lumos Networks Corp. has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Partner Communications has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lumos Networks Corp. and Partner Communications’ gross 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
Partner Communications $947.61 million 0.83 $123.16 million $0.15 33.40

Partner Communications has higher revenue and earnings than Lumos Networks Corp..

Profitability

This table compares Lumos Networks Corp. and Partner Communications’ 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%
Partner Communications 2.70% 8.13% 1.75%

Insider and Institutional Ownership

84.0% of Lumos Networks Corp. shares are held by institutional investors. Comparatively, 2.0% of Partner Communications shares are held by institutional investors. 8.7% of Lumos Networks Corp. shares are held by company insiders. Comparatively, 0.6% of Partner Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Partner Communications beats Lumos Networks Corp. on 8 of the 11 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.

Partner Communications Company Profile

Partner Communications Company Ltd. is a telecommunications company. The Company is engaged in the business of cellular telephony, provided on its second generation (2G), third generation (3G) and fourth generation (4G) networks. It operates through two segments: cellular segment and fixed-line segment. Its products and services are marketed under the Partner brand. The Company’s cellular business segment includes basic cellular telephony services, text messaging, data, airtime, interconnect, roaming, content services and other value added services. The fixed-line segment includes a range of services provided over fixed-line networks, including Internet service provider (ISP) services, business information storage in a data center and cloud services. The Company also provides wireless fidelity (Wi-Fi) networks and fixed-line voice communication services. In addition, the fixed-line segment includes sales of related equipment. It also offers anti-virus and anti-spam filtering.

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