Neustar (NYSE: NSR) and Altice USA (NASDAQ:ATUS) are both telecommunications services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Earnings and Valuation

This table compares Neustar and Altice USA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Neustar N/A N/A N/A $3.27 10.24
Altice USA $9.20 billion 2.44 $3.69 billion N/A N/A

Altice USA has higher revenue and earnings than Neustar.

Analyst Recommendations

This is a breakdown of recent recommendations for Neustar and Altice USA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neustar 0 3 0 0 2.00
Altice USA 0 5 7 0 2.58

Neustar presently has a consensus price target of $29.50, suggesting a potential downside of 11.94%. Altice USA has a consensus price target of $36.50, suggesting a potential upside of 19.63%. Given Altice USA’s stronger consensus rating and higher possible upside, analysts plainly believe Altice USA is more favorable than Neustar.

Profitability

This table compares Neustar and Altice USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neustar 15.50% 19.28% 8.80%
Altice USA -20.39% -63.90% -5.28%

Insider and Institutional Ownership

88.8% of Neustar shares are held by institutional investors. 2.9% of Neustar 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.

Summary

Neustar beats Altice USA on 5 of the 9 factors compared between the two stocks.

About Neustar

NeuStar, Inc. is a global information services provider. The Company’s cloud-based platforms and differentiated data sets offer informative, real-time analytics, which enable clients to make actionable, data-driven decisions. It provides chief marketing officers a suite of services to plan their media spends, identify and locate desired customers, invest in marketing campaigns, deliver relevant offers and measure the performance of these activities. Security professionals use the Company’s solutions to maximize Web performance and protect against malicious attacks. It enables the exchange of essential operating information across multiple carriers to provision and manage services, assisting clients with order processing and routing of customer inquiries. The Company’s services include marketing services, security services, data services and number portability administration center (NPAC) services.

About Altice USA

Altice USA, Inc. is engaged in providing broadband communications and video services in the United States. The Company’s segments include Cablevision and Cequel. Cablevision provides broadband, pay television and telephony services to residential and business customers in and around the New York metropolitan area. Cequel provides broadband, pay television and telephony services to residential and business customers in the south-central United States. It also provides services through ten states of Texas, West Virginia, Louisiana, Arkansas, North Carolina, Oklahoma, Arizona, California, Missouri and Ohio. The Company also provides Wi-Fi hotspot access content and advertising services. Broadband provides services, such as video streaming, content downloading for time-shifted video consumption and other applications delivered over OTT platforms. Pay Television provides services through cable network. Video services delivered over DSL networks.

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