Lanyon Solutions (NYSE: ACTV) and GTT Communications (NYSE:GTT) are both cloud computing services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Lanyon Solutions and GTT Communications’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Lanyon Solutions N/A N/A N/A ($0.64) N/A
GTT Communications $521.70 million 2.80 $5.26 million ($0.56) -63.04

GTT Communications has higher revenue and earnings than Lanyon Solutions. GTT Communications is trading at a lower price-to-earnings ratio than Lanyon Solutions, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

59.6% of GTT Communications shares are held by institutional investors. 25.7% of GTT Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Lanyon Solutions and GTT Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lanyon Solutions N/A N/A N/A
GTT Communications -3.78% 2.09% 0.29%

Analyst Ratings

This is a summary of current ratings and price targets for Lanyon Solutions and GTT Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lanyon Solutions 0 0 0 0 N/A
GTT Communications 0 0 4 0 3.00

GTT Communications has a consensus price target of $36.75, indicating a potential upside of 4.11%.

Summary

GTT Communications beats Lanyon Solutions on 7 of the 8 factors compared between the two stocks.

Lanyon Solutions Company Profile

The Active Network, Inc. is a provider of organization-based cloud computing applications serving a range of customer groups, including business solutions, community activities, outdoors and sports. The Company operates in two segments: Technology and Marketing services. The technology revenue segment is primarily composed of net registration revenue, which is made up of the technology fee. Technology revenue also includes software licensing, installation, training, maintenance and hosting subscriptions. The marketing services revenue segment includes online services, field marketing services and membership programs.

GTT Communications Company Profile

GTT Communications, Inc. provides cloud networking services to a range of clients. The Company offers a portfolio of global communications services, wide area network (WAN) services; Internet services; managed network and security services, and voice and unified communication services. It provides Layer 2 (Ethernet) and Layer 3 (multiprotocol label switching (MPLS)) WAN solutions for multinational clients. It offers customers with high-bandwidth global Internet connectivity and Internet protocol (IP) transit with availability and packet delivery. The Company offers managed network services, including managed equipment, managed security services and managed remote access. Its Session Initiation Protocol (SIP) Trunking service is an enterprise-built unified communications offering that integrates voice, video and chat onto a single IP connection. As of December 31, 2016, it had provided services to multinational enterprises, carriers and government customers in over 100 countries.

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