Critical Analysis: Multiband (MBND) and Shenandoah Telecommunications (SHEN)
Multiband (NASDAQ: MBND) and Shenandoah Telecommunications (NASDAQ:SHEN) are both small-cap telecommunications services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Risk & Volatility
Multiband has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Shenandoah Telecommunications has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.
52.6% of Shenandoah Telecommunications shares are held by institutional investors. 7.2% of Shenandoah Telecommunications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Multiband and Shenandoah Telecommunications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shenandoah Telecommunications||$535.29 million||3.49||-$890,000.00||$0.12||316.42|
Multiband has higher earnings, but lower revenue than Shenandoah Telecommunications. Multiband is trading at a lower price-to-earnings ratio than Shenandoah Telecommunications, indicating that it is currently the more affordable of the two stocks.
Shenandoah Telecommunications pays an annual dividend of $0.26 per share and has a dividend yield of 0.7%. Multiband does not pay a dividend. Shenandoah Telecommunications pays out 216.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Multiband and Shenandoah Telecommunications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Multiband and Shenandoah Telecommunications, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shenandoah Telecommunications has a consensus price target of $35.00, suggesting a potential downside of 7.82%.
Shenandoah Telecommunications beats Multiband on 8 of the 11 factors compared between the two stocks.
Multiband Company Profile
Multiband Corporation provides contract installation services for the pay television industry (including satellite and broadband cable operators), Internet providers and retailers, voice, data and video services to residents of multi-dwelling units. It operates in three segments: Field Services (FS), where the Company provides installation services to pay television (satellite and broadband cable) providers, Internet providers and commercial customers; Multi-Dwelling Unit (MDU), where the Company bills voice, Internet and video services to subscribers as owner/operator and also acts as a master service operator for DIRECTV, receiving net cash payments for managing video subscribers through its network of system operators, and Engineering, Energy & Construction (EE&C) where the Company provides engineering and construction services for the wired and wireless telecommunications industry, including public safety networks. In August 2013, Goodman Networks Inc acquired the Company.
Shenandoah Telecommunications Company Profile
Shenandoah Telecommunications Company is a telecommunications holding company. The Company’s segments are Wireless, Cable, Wireline and Other. The Company, through its operating subsidiaries, provides both regulated and unregulated telecommunications services to end user customers and other telecommunications providers in Virginia, West Virginia, central Pennsylvania, western Maryland, and portions of Kentucky and Ohio. The business of the Wireless segment is conducted principally by the Company’s subsidiary, Shenandoah Personal Communications, LLC (PCS). The business of the Company’s Cable segment is conducted through Shenandoah Cable Television, LLC (Shenandoah Cable). The Wireline segment provides regulated and unregulated voice services, digital subscriber line (DSL) Internet access, cable modem and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia.
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