Shenandoah Telecommunications (SHEN) & Digerati Technologies (DTGI) Critical Survey

Digerati Technologies (OTCMKTS:DTGI) and Shenandoah Telecommunications (NASDAQ:SHEN) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Risk & Volatility

Digerati Technologies has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, Shenandoah Telecommunications has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Digerati Technologies and Shenandoah Telecommunications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digerati Technologies -106.89% N/A -118.03%
Shenandoah Telecommunications 14.41% 8.73% 2.44%

Earnings and Valuation

This table compares Digerati Technologies and Shenandoah Telecommunications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digerati Technologies $2.00 million 0.89 -$3.16 million N/A N/A
Shenandoah Telecommunications $611.99 million 4.00 $66.39 million $0.26 189.92

Shenandoah Telecommunications has higher revenue and earnings than Digerati Technologies.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Digerati Technologies and Shenandoah Telecommunications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digerati Technologies 0 0 0 0 N/A
Shenandoah Telecommunications 0 1 2 0 2.67

Shenandoah Telecommunications has a consensus target price of $50.00, suggesting a potential upside of 1.26%. Given Shenandoah Telecommunications’ higher probable upside, analysts plainly believe Shenandoah Telecommunications is more favorable than Digerati Technologies.

Insider and Institutional Ownership

47.0% of Shenandoah Telecommunications shares are held by institutional investors. 8.0% of Digerati Technologies shares are held by insiders. Comparatively, 6.8% of Shenandoah Telecommunications shares 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.

Dividends

Shenandoah Telecommunications pays an annual dividend of $0.27 per share and has a dividend yield of 0.5%. Digerati Technologies does not pay a dividend. Shenandoah Telecommunications pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shenandoah Telecommunications has increased its dividend for 6 consecutive years.

Summary

Shenandoah Telecommunications beats Digerati Technologies on 11 of the 14 factors compared between the two stocks.

About Digerati Technologies

Digerati Technologies, Inc., through its subsidiaries, provides Internet-based telephony products and services through its cloud telephony application platform and session-based communication network. The company provides Internet-based services, including voice over Internet protocol (VoIP) transport, customized VoIP, fully hosted IP/PBX services, SIP trunking, call center applications, interactive voice response auto attendant, voice and web conferencing, call recording, simultaneous calling, voicemail to email conversion, integrated mobility applications, and various customized IP/PBX features in a hosted or cloud environment. It serves small to medium-sized businesses, enterprise customers, call centers, and telephony service providers. The company was formerly known as ATSI Communications Inc. and changed its name to Digerati Technologies, Inc. in March 2011. Digerati Technologies, Inc. was founded in 1993 and is headquartered in San Antonio, Texas.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company, through its subsidiaries, provides regulated and unregulated telecommunications services to customers and other telecommunications providers in central and western Virginia, south-central Pennsylvania, West Virginia, Maryland, North Carolina, Kentucky, Tennessee, and Ohio. It offers integrated voice, video, and data communications services. The company operates in three segments: Wireless, Cable, and Wireline. The Wireless segment provides digital wireless mobile services; and wireless mobility communications network products and services. As of December 31, 2017, it owned 192 cell site towers built on leased land and owned land; and leases space on towers to third party wireless service providers. The Cable segment offers video, Internet, and voice services in Virginia, West Virginia, and western Maryland; and leases fiber optic facilities. The Wireline segment provides regulated and unregulated voice services, DSL Internet access, and long distance access services in Shenandoah County, as well as portions of Rockingham, Frederick, Warren, and Augusta counties in Virginia; video services in portions of Shenandoah County; and leases fiber optic facilities in the northern Shenandoah Valley of Virginia, northern Virginia, and adjacent areas along the Interstate 81 corridor. The company offers its products and services under the Sprint and Shentel brands. Shenandoah Telecommunications Company was founded in 1902 and is headquartered in Edinburg, Virginia.

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