Alaska Communications Systems Group (NASDAQ:ALSK) and Nuvera Communications (OTCMKTS:NUVR) are both small-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Volatility and Risk
Alaska Communications Systems Group has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Nuvera Communications has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.
This table compares Alaska Communications Systems Group and Nuvera Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alaska Communications Systems Group||4.13%||5.68%||1.73%|
Institutional and Insider Ownership
48.1% of Alaska Communications Systems Group shares are owned by institutional investors. 4.2% of Alaska Communications Systems Group shares are owned by company insiders. Comparatively, 7.4% of Nuvera Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Alaska Communications Systems Group pays an annual dividend of $0.09 per share and has a dividend yield of 2.8%. Nuvera Communications pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%.
Valuation and Earnings
This table compares Alaska Communications Systems Group and Nuvera Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alaska Communications Systems Group||$231.69 million||0.76||$4.93 million||N/A||N/A|
|Nuvera Communications||$64.94 million||1.92||$8.33 million||N/A||N/A|
Nuvera Communications has lower revenue, but higher earnings than Alaska Communications Systems Group.
This is a summary of recent recommendations and price targets for Alaska Communications Systems Group and Nuvera Communications, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alaska Communications Systems Group||0||0||0||0||N/A|
Nuvera Communications beats Alaska Communications Systems Group on 6 of the 11 factors compared between the two stocks.
Alaska Communications Systems Group Company Profile
Alaska Communications Systems Group, Inc., through its subsidiaries, provides broadband telecommunication and managed information technology services to business, wholesale, and consumer customers in the United States. Its services include voice and broadband services; and managed IT services comprising remote network monitoring and support service, managed IT security and IT professional services, and long distance services primarily over its own terrestrial network to business and wholesale customers. The company's business customers comprise enterprises; federal, state, and local governments; and small and medium business. It also provides voice and broadband services to residential customers in residential homes and multi-dwelling units; voice and broadband origination and termination services to inter and intrastate carriers; and access and support services. The company markets and sells its products through direct sales channels. Alaska Communications Systems Group, Inc. was incorporated in 1998 and is based in Anchorage, Alaska.
Nuvera Communications Company Profile
Nuvera Communications, Inc., a diversified communications company, engages in local telephone exchange and communications businesses. It offers local services to make and receive telephone calls within a defined local calling area; and network access services to other communication carriers for the use of its facilities to terminate or originate long distance calls on its network. The company also provides video services; high speed Internet to business and residential customers; e-mail and managed services comprises web hosting and design, online file back up, and online file storage; directory assistance, operator service, and long distance private lines; directory publishing, bill processing, and other customer services; and fiber-delivered communications and managed information technology solutions, as well as sells and services customer premise equipment. In addition, it is involved in the retail sale and service of cellular phones and accessories through Telespire, a wireless provider. As of August 10, 2020, the company served 24,540 access lines in the Minnesota communities of Bellechester, Courtland, Elko, Evan, Goodhue, Hanska, Hutchinson, Klossner, Litchfield, Mazeppa, New Market, New Ulm, Prior Lake, Redwood Falls, Sanborn, Savage, Searles, Sleepy Eye, Springfield, and White Rock, as well as the rural areas of Blue Earth, Brown, Goodhue, McLeod, Meeker, Nicollet, Redwood, Rice, Scott, and Wabasha counties in south central Minnesota; and the community of Aurelia, Iowa, as well as rural areas surrounding Aurelia. It also operates multiple Internet protocol television (IPTV) and cable television services systems in Minnesota; and one IPTV system in Aurelia, Iowa serving 11,635 customers. The company was formerly known as New Ulm Telecom, Inc. and changed its name to Nuvera Communications, Inc. in June 2018. Nuvera Communications, Inc. was founded in 1905 and is headquartered in New Ulm, Minnesota.
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