Verizon Communications (NYSE: VZ) is one of 48 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its rivals? We will compare Verizon Communications to related businesses based on the strength of its valuation, profitability, earnings, dividends, risk, analyst recommendations and institutional ownership.

Dividends

Verizon Communications pays an annual dividend of $2.36 per share and has a dividend yield of 5.0%. 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 4.5% and pay out 494.1% of their earnings in the form of a dividend. Verizon Communications has increased its dividend for 10 consecutive years. Verizon Communications is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Verizon Communications and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verizon Communications 0 19 5 0 2.21
Verizon Communications Competitors 546 1579 1871 65 2.36

Verizon Communications presently has a consensus price target of $52.91, indicating a potential upside of 11.58%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 54.42%. Given Verizon Communications’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Verizon Communications has less favorable growth aspects than its rivals.

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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Verizon Communications and its rivals’ 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 1.03% -0.22% 1.63%

Volatility and Risk

Verizon Communications has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Verizon Communications’ rivals have a beta of 1.02, suggesting that their average share price is 2% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Verizon Communications $125.98 billion $13.13 billion 12.16
Verizon Communications Competitors $16.03 billion $1.29 billion 24.12

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

Summary

Verizon Communications beats its rivals on 8 of the 15 factors compared.

Verizon Communications Company Profile

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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