Orange SA (NASDAQ: ORAN) and FairPoint Communications (NASDAQ:FRP) are both telecommunications services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings for Orange SA and FairPoint Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orange SA 2 1 2 0 2.00
FairPoint Communications 0 1 0 0 2.00

FairPoint Communications has a consensus target price of $17.00, indicating a potential upside of 6.58%. Given FairPoint Communications’ higher possible upside, analysts clearly believe FairPoint Communications is more favorable than Orange SA.

Valuation & Earnings

This table compares Orange SA and FairPoint Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Orange SA $49.41 billion 0.88 $14.60 billion N/A N/A
FairPoint Communications N/A N/A N/A $2.27 7.03

Orange SA has higher revenue and earnings than FairPoint Communications.

Profitability

This table compares Orange SA and FairPoint Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orange SA 4.09% 4.47% 1.76%
FairPoint Communications -11.81% N/A -7.88%

Insider and Institutional Ownership

88.6% of FairPoint Communications shares are owned by institutional investors. 7.6% of FairPoint Communications 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.

Summary

Orange SA beats FairPoint Communications on 5 of the 8 factors compared between the two stocks.

Orange SA Company Profile

Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.

FairPoint Communications Company Profile

FairPoint Communications, Inc. is a provider of data, voice and communications services to business, wholesale and residential customers within its service territories. The Company offers its customers a suite of services, such as Ethernet, Session Initiation Protocol Trunking (SIP-Trunking), hosted Primary Branch Exchange (hosted PBX), managed services, data center colocation services, high capacity data transport and other Internet protocol (IP)-based services over its fiber-based network. It also offers Internet access, high-speed data, and local and long distance voice services. It provides services, such as Data and Internet Services, which include optical, Ethernet, Ethernet virtual circuit technology for cellular backhaul and private line special access services. It offers Voice Services, which include Local Calling Services, Long Distance Services and 9-1-1 Services. It also offers Network Transport Services, Interstate Access Charges and Intrastate Access Charges.

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