West Corporation (NASDAQ: WSTC) is one of 67 public companies in the “Communications & Networking” industry, but how does it contrast to its peers? We will compare West Corporation to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.

Volatility & Risk

West Corporation has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, West Corporation’s peers have a beta of 1.17, suggesting that their average share price is 17% more volatile than the S&P 500.

Profitability

This table compares West Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Corporation 9.39% -59.08% 7.03%
West Corporation Competitors -2.09% -7.03% 0.12%

Institutional & Insider Ownership

67.4% of West Corporation shares are owned by institutional investors. Comparatively, 64.0% of shares of all “Communications & Networking” companies are owned by institutional investors. 4.6% of West Corporation shares are owned by company insiders. Comparatively, 12.5% of shares of all “Communications & Networking” companies are owned 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.

Analyst Ratings

This is a summary of current ratings for West Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Corporation 0 5 0 0 2.00
West Corporation Competitors 361 2381 3902 152 2.57

West Corporation currently has a consensus price target of $24.50, indicating a potential upside of 4.30%. As a group, “Communications & Networking” companies have a potential upside of 22.63%. Given West Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe West Corporation has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares West Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
West Corporation $2.29 billion $636.33 million 9.36
West Corporation Competitors $2.41 billion $618.33 million 26.68

West Corporation’s peers have higher revenue, but lower earnings than West Corporation. West Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

West Corporation pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. West Corporation pays out 17.9% of its earnings in the form of a dividend. As a group, “Communications & Networking” companies pay a dividend yield of 2.0% and pay out 40.7% of their earnings in the form of a dividend.

Summary

West Corporation peers beat West Corporation on 9 of the 15 factors compared.

West Corporation Company Profile

West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.

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