Verizon Communications (NYSE: VZ) is one of 45 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare Verizon Communications to related companies based on the strength of its valuation, risk, analyst recommendations, earnings, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Verizon Communications and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Verizon Communications $123.64 billion $43.95 billion 12.27
Verizon Communications Competitors $13.43 billion $4.48 billion 6.13

Verizon Communications has higher revenue and earnings than its peers. Verizon Communications is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Verizon Communications pays an annual dividend of $2.36 per share and has a dividend yield of 4.9%. Verizon Communications pays out 60.5% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.9% and pay out 946.0% of their earnings in the form of a dividend. Verizon Communications has raised its dividend for 10 consecutive years. Verizon Communications is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

62.1% of Verizon Communications shares are held by institutional investors. Comparatively, 58.2% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.1% of Verizon Communications shares are held by company insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Verizon Communications and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verizon Communications 12.80% 58.66% 6.13%
Verizon Communications Competitors 1.52% -0.10% 1.88%

Analyst Ratings

This is a breakdown of current ratings for Verizon Communications and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verizon Communications 0 19 5 0 2.21
Verizon Communications Competitors 538 1549 1839 65 2.36

Verizon Communications presently has a consensus price target of $52.91, indicating a potential upside of 10.53%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 47.53%. Given Verizon Communications’ peers stronger consensus rating and higher probable upside, analysts plainly believe Verizon Communications has less favorable growth aspects than its peers.

Risk and Volatility

Verizon Communications has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Verizon Communications’ peers have a beta of 0.95, suggesting that their average share price is 5% less volatile than the S&P 500.

Summary

Verizon Communications beats its peers on 9 of the 15 factors compared.

About Verizon Communications

Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video, data center and cloud services, security and managed network services, and local and long distance voice services. The Company has combined Yahoo! Inc.’s operating assets with its existing AOL Inc. business to create a new subsidiary, Oath Inc., owns a diverse house of more than 50 media and technology brands. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail.

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