Analyzing Alcatel Lucent SA (ALU) and West Corporation (WSTC)
Alcatel Lucent SA (NYSE: ALU) and West Corporation (NASDAQ:WSTC) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
67.4% of West Corporation shares are owned by institutional investors. 4.6% of West Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Alcatel Lucent SA and West Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alcatel Lucent SA||N/A||N/A||N/A||N/A||N/A|
|West Corporation||$2.29 billion||0.86||$636.33 million||$2.51||9.36|
West Corporation has higher revenue and earnings than Alcatel Lucent SA.
This is a breakdown of current ratings and target prices for Alcatel Lucent SA and West Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alcatel Lucent SA||0||0||0||0||N/A|
West Corporation has a consensus target price of $24.50, indicating a potential upside of 4.26%. Given West Corporation’s higher possible upside, analysts plainly believe West Corporation is more favorable than Alcatel Lucent SA.
West Corporation pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. Alcatel Lucent SA does not pay a dividend. West Corporation pays out 17.9% of its earnings in the form of a dividend.
This table compares Alcatel Lucent SA and West Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alcatel Lucent SA||14.83%||86.14%||10.96%|
About Alcatel Lucent SA
Alcatel Lucent SA is a provider of Internet protocol (IP) networking, ultra-broadband access and cloud technology solutions. The Company operates through two segments for the networks business. The Ultra Broadband Networks segment consists of Mobile Networks and Fixed Networks business groups. The IP Networks and Applications segment consists of Internet protocol (IP)/Optical Networks and Applications and Analytics business groups. Its other segment consists of businesses run as separate operations (Alcatel Submarine Networks and Radio Frequency Systems (RFS)). The Company offers a range of solutions, including Communications and collaboration, IP Core Routing, IP/optical integration, long term evolution (LTE) Ultra-Broadband, Software-defined networking and Vplus. The Company offers a range of consulting, managed, maintenance and professional services, including Bell Labs Consulting and Build, Operate and Manage (BOM) Solution for Mobility Networks. The main shareholder is Nokia.
About West Corporation
West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.
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