Spark New Zealand (OTCMKTS:SPKKY) and GCI Liberty (NASDAQ:GLIBA) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Dividends

Spark New Zealand pays an annual dividend of $0.59 per share and has a dividend yield of 4.8%. GCI Liberty does not pay a dividend. Spark New Zealand pays out 72.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.3% of Spark New Zealand shares are held by institutional investors. Comparatively, 88.5% of GCI Liberty shares are held by institutional investors. 8.0% of GCI Liberty shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Spark New Zealand and GCI Liberty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spark New Zealand 1 0 0 0 1.00
GCI Liberty 0 1 3 0 2.75

GCI Liberty has a consensus price target of $67.25, suggesting a potential upside of 14.90%. Given GCI Liberty’s stronger consensus rating and higher probable upside, analysts clearly believe GCI Liberty is more favorable than Spark New Zealand.

Profitability

This table compares Spark New Zealand and GCI Liberty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spark New Zealand N/A N/A N/A
GCI Liberty -118.05% -4.71% -2.43%

Valuation and Earnings

This table compares Spark New Zealand and GCI Liberty’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spark New Zealand $2.61 billion 1.73 $275.15 million $0.82 14.99
GCI Liberty $739.76 million 8.35 -$873.30 million ($1.58) -37.04

Spark New Zealand has higher revenue and earnings than GCI Liberty. GCI Liberty is trading at a lower price-to-earnings ratio than Spark New Zealand, indicating that it is currently the more affordable of the two stocks.

Spark New Zealand Company Profile

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications, and information and communications technology (ICT) products and services primarily in New Zealand. The company's Spark Home, Mobile & Business segment offers a range of services and content, data, and voice services across fiber, wireless, and copper broadband, mobile, online video entertainment, and nationwide Wi-Fi zones to consumer and small business customers. Its Spark Digital segment integrates IT and telecommunications services to provide converged ICT solutions for clients. The company's Spark Connect & Platforms segment engages in the Spark's network and IT operations, shared business operations, and digital and service transformation activities. Its Spark Ventures & Wholesale segment develops a portfolio of businesses; and engages in the servicing and stewardship of Spark's wholesale products and services. The company also offers IT infrastructure, business cloud, business telecommunications, outsourced telecommunications, subscription video-on-demand, big data analytics and marketing automation, IT infrastructure and data center, and international wholesale telecommunications services. In addition, it provides local, national, and international telephone and data services; and retails telecommunications products and services. The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. Spark New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.

GCI Liberty Company Profile

GCI Liberty, Inc., together with its subsidiaries, provides various communication services in the United States. The company offers data, wireless, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions. It also operates a digital invitation platform that provides custom display advertising, native advertising content, custom video, and brand partnership services. The company is headquartered in Englewood, Colorado.

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