Level 3 Communications (NYSE: LVLT) is one of 45 public companies in the “Integrated Telecommunications Services” industry, but how does it compare to its rivals? We will compare Level 3 Communications to similar businesses based on the strength of its institutional ownership, risk, earnings, dividends, profitability, valuation and analyst recommendations.

Earnings & Valuation

This table compares Level 3 Communications and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Level 3 Communications $8.17 billion $2.66 billion 30.22
Level 3 Communications Competitors $13.52 billion $4.52 billion 5.81

Level 3 Communications’ rivals have higher revenue and earnings than Level 3 Communications. Level 3 Communications is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Level 3 Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Level 3 Communications 7.85% 5.80% 2.55%
Level 3 Communications Competitors 0.72% -0.82% 1.41%

Risk & Volatility

Level 3 Communications has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Level 3 Communications’ rivals have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Level 3 Communications and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Level 3 Communications 1 11 1 0 2.00
Level 3 Communications Competitors 534 1541 1831 65 2.36

Level 3 Communications currently has a consensus price target of $61.04, suggesting a potential upside of 14.75%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 48.52%. Given Level 3 Communications’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Level 3 Communications has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

99.0% of Level 3 Communications shares are owned by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 0.5% of Level 3 Communications shares are owned by company insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Level 3 Communications rivals beat Level 3 Communications on 7 of the 13 factors compared.

About Level 3 Communications

Level 3 Communications, Inc. is a provider of a range of integrated communications services. The Company’s operating segments include North America, EMEA and Latin America. The North America includes operations in Atlanta, Georgia; Littleton, Colorado; Miami, Florida; Montreal, Canada; New York, New York; Phoenix, Arizona; Pittsburgh, Pennsylvania; Southfield, Michigan, and Tulsa, Oklahoma. The Europe segment includes operations in Basingstoke, England; Crewe, England; Dublin, Ireland; London, England; Amsterdam, The Netherlands, and Paris, France. The Latin America includes operations in Colombia; Buenos Aires, Argentina; Caracas, Venezuela; Lima, Peru; Quito, Ecuador; Santiago, Chile, and Sao Paulo, Brazil. It offers optical, Internet Protocol, computing and storage technologies. It offers a range of communications services, including Internet Protocol (IP) and data services, transport and fiber services, colocation and data center services, security services and voice services.

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