Contrasting Consolidated Communications (CNSL) & The Competition


Consolidated Communications (NASDAQ: CNSL) is one of 74 public companies in the “Telephone communication, except radio” industry, but how does it contrast to its peers? We will compare Consolidated Communications to related companies based on the strength of its analyst recommendations, profitability, earnings, dividends, institutional ownership, valuation and risk.

Dividends

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Consolidated Communications pays an annual dividend of $1.55 per share and has a dividend yield of 13.3%. Consolidated Communications pays out 596.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Telephone communication, except radio” companies pay a dividend yield of 4.5% and pay out 79.3% of their earnings in the form of a dividend.


Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Consolidated Communications $1.06 billion $64.94 million 44.92
Consolidated Communications Competitors $17.39 billion $2.01 billion 17.41

Consolidated Communications’ peers have higher revenue and earnings than Consolidated Communications. Consolidated 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.


Analyst Recommendations

This is a summary of current ratings and target prices for Consolidated Communications and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Communications 0 4 1 2 2.71
Consolidated Communications Competitors 625 1908 1970 101 2.34

Consolidated Communications currently has a consensus price target of $17.50, suggesting a potential upside of 49.83%. As a group, “Telephone communication, except radio” companies have a potential upside of 73.69%. Given Consolidated Communications’ peers higher probable upside, analysts clearly believe Consolidated Communications has less favorable growth aspects than its peers.

Insider and Institutional Ownership

74.9% of Consolidated Communications shares are held by institutional investors. Comparatively, 46.9% of shares of all “Telephone communication, except radio” companies are held by institutional investors. 2.4% of Consolidated Communications shares are held by insiders. Comparatively, 7.2% of shares of all “Telephone communication, except radio” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.


Volatility and Risk

Consolidated Communications has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Consolidated Communications’ peers have a beta of 0.58, indicating that their average stock price is 42% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Consolidated Communications 4.60% -0.29% -0.04%
Consolidated Communications Competitors -12.76% -12.04% -0.87%

Summary

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

Consolidated Communications Company Profile

Consolidated Communications Holdings, Inc., through its subsidiaries, provides various integrated communications services to business and residential customers in the United States. It offers a range of communication services and products that include local and long-distance, high-speed broadband Internet access, video, voice over Internet protocol, private line, custom calling features, security, cloud, data center, managed and IT, and directory publishing services, as well as engages in equipment sales activities. The company also sells and supports telecommunications equipment, such as key, private branch exchange, IP-based telephone systems, and other hardware solutions, as well as offers support services to medium and large business customers. As of December 31, 2017, it had approximately 972 thousand voice connections, 784 thousand data connections, and 103 thousand video connections. The company serves customers in consumer, commercial, and carrier channels. Consolidated Communications Holdings, Inc. was founded in 1894 and is headquartered in Mattoon, Illinois.

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