Head-To-Head Comparison: Consolidated Communications (NASDAQ:CNSL) and Crexendo (NASDAQ:CXDO)

Crexendo (OTCMKTS:CXDO) and Consolidated Communications (NASDAQ:CNSL) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Analyst Ratings

This is a summary of current ratings for Crexendo and Consolidated Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crexendo 0 0 0 0 N/A
Consolidated Communications 1 1 1 0 2.00

Consolidated Communications has a consensus price target of $5.75, indicating a potential upside of 11.00%. Given Consolidated Communications’ higher probable upside, analysts plainly believe Consolidated Communications is more favorable than Crexendo.

Valuation and Earnings

This table compares Crexendo and Consolidated Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crexendo $11.91 million 5.94 -$220,000.00 N/A N/A
Consolidated Communications $1.40 billion 0.27 -$50.83 million ($0.42) -12.33

Crexendo has higher earnings, but lower revenue than Consolidated Communications.

Risk and Volatility

Crexendo has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500. Comparatively, Consolidated Communications has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of Crexendo shares are owned by institutional investors. Comparatively, 77.2% of Consolidated Communications shares are owned by institutional investors. 78.0% of Crexendo shares are owned by company insiders. Comparatively, 3.1% of Consolidated Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Crexendo 6.54% 34.90% 15.59%
Consolidated Communications -2.10% -2.94% -0.32%

Summary

Crexendo beats Consolidated Communications on 8 of the 12 factors compared between the two stocks.

Crexendo Company Profile

Crexendo, Inc. provides unified communications cloud telecom, broadband Internet, and other cloud business services for businesses in North America and internationally. The company operates in two segments, Cloud Telecommunications and Web Services. The Cloud Telecommunications segment provides telecommunications services that transmit calls using IP or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services. This segment is also involved in the sale and lease of cloud telecommunications equipment. It offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed Internet connection through various devices and user interfaces, such as desktop phones, and/or mobile and desktop applications. The Web Services segment provides Website hosting and other professional services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was founded in 1995 and is headquartered in Tempe, Arizona.

Consolidated Communications Company Profile

Consolidated Communications Holdings, Inc., through its subsidiaries, provides telecommunications services to business and residential customers in the United States. It offers high-speed broadband Internet access and voice over Internet protocol (VoIP) phone services to small, medium, and large business customers; commercial data connectivity services in select markets, including a portfolio of Ethernet services, software defined wide area network, multi-protocol label switching, and private line services; and wholesale services to regional and national interexchange and wireless carriers, including cellular backhaul, dark fiber, and other fiber transport solutions. The company also provides voice services that include local phone and long-distance service packages for business customers; and sells business equipment and provides related hardware and maintenance support, video, and other miscellaneous services, as well as rents customer premises equipment. In addition, it offers video services, which consist of high-definition television, digital video recorders (DVR), and/or a whole home DVR; other in-demand streaming content; and network access services, including interstate and intrastate switched access, network special access, and end user access. Further, the company engages in telephone directory publishing, video advertising, billing and support services, and other miscellaneous activities. As of December 31, 2018, it had approximately 902 thousand voice connections, 779 thousand data connections, and 93 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.

Receive News & Ratings for Crexendo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Crexendo and related companies with MarketBeat.com's FREE daily email newsletter.