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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FairPoint Communications 0 1 0 0 2.00
FairPoint Communications Competitors 532 1529 1824 65 2.36

FairPoint Communications presently has a consensus target price of $17.00, indicating a potential upside of 6.58%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 46.29%. Given FairPoint Communications’ peers stronger consensus rating and higher probable upside, analysts clearly believe FairPoint Communications has less favorable growth aspects than its peers.

Insider & Institutional Ownership

88.6% of FairPoint Communications shares are held by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 7.6% of FairPoint 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 stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
FairPoint Communications -11.81% N/A -7.88%
FairPoint Communications Competitors 0.72% -0.71% 1.42%

Volatility and Risk

FairPoint Communications has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, FairPoint Communications’ peers have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
FairPoint Communications N/A N/A 7.03
FairPoint Communications Competitors $13.52 billion $4.52 billion 5.16

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

Summary

FairPoint Communications peers beat FairPoint Communications on 8 of the 11 factors compared.

About FairPoint Communications

FairPoint Communications, Inc. is a provider of data, voice and communications services to business, wholesale and residential customers within its service territories. The Company offers its customers a suite of services, such as Ethernet, Session Initiation Protocol Trunking (SIP-Trunking), hosted Primary Branch Exchange (hosted PBX), managed services, data center colocation services, high capacity data transport and other Internet protocol (IP)-based services over its fiber-based network. It also offers Internet access, high-speed data, and local and long distance voice services. It provides services, such as Data and Internet Services, which include optical, Ethernet, Ethernet virtual circuit technology for cellular backhaul and private line special access services. It offers Voice Services, which include Local Calling Services, Long Distance Services and 9-1-1 Services. It also offers Network Transport Services, Interstate Access Charges and Intrastate Access Charges.

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