Otelco (NASDAQ: OTEL) is one of 90 publicly-traded companies in the “Telephone communication, except radio” industry, but how does it compare to its peers? We will compare Otelco to similar businesses based on the strength of its profitability, valuation, earnings, risk, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current ratings for Otelco and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Otelco 0 0 1 0 3.00
Otelco Competitors 917 2771 2657 123 2.31

As a group, “Telephone communication, except radio” companies have a potential upside of 37.78%. Given Otelco’s peers higher probable upside, analysts clearly believe Otelco has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Otelco and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Otelco $62.77 million $7.80 million 5.11
Otelco Competitors $15.26 billion $745.92 million 23.38

Otelco’s peers have higher revenue and earnings than Otelco. Otelco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Otelco 11.05% 31.88% 5.53%
Otelco Competitors -96.12% -2.22% -0.77%

Institutional and Insider Ownership

10.8% of Otelco shares are held by institutional investors. Comparatively, 46.4% of shares of all “Telephone communication, except radio” companies are held by institutional investors. 7.8% of Otelco shares are held by insiders. Comparatively, 7.8% of shares of all “Telephone communication, except radio” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Otelco has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, Otelco’s peers have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Summary

Otelco peers beat Otelco on 7 of the 13 factors compared.

Otelco Company Profile

Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. It offers local services, including voice lines that provide local dial tone and calling features, such as caller identification, call waiting, call forwarding, and voicemail; long distance services; billing and payments; and directory advertising services. The company also provides network access services comprising the origination, transportation, and termination of calls of long distance, wireless, and other interexchange carriers; digital high-speed data lines and ancillary services, such as web hosting and computer virus protection; and basic, digital, high-definition, digital video recording, and pay per view cable television services. In addition, it offers Internet protocol television; wireless security systems and system monitoring services; and private/hybrid cloud hosting services, as well as consulting and professional IT engineering services for mission-critical software applications for small and mid-sized companies. Further, the company rents fiber to transport data and other telecommunications services. It primarily serves business and residential customers residing in and adjacent to the exchanges in Alabama, Maine, Massachusetts, Missouri, Vermont, and West Virginia; and business customers in Maine and New Hampshire. The company was founded in 1998 and is based in Oneonta, Alabama.

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