Deutsche Telekom (OTCMKTS:DTEGY) vs. Shenandoah Telecommunications (NASDAQ:SHEN) Financial Survey

Shenandoah Telecommunications (NASDAQ:SHEN) and Deutsche Telekom (OTCMKTS:DTEGY) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Risk & Volatility

Shenandoah Telecommunications has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Valuation & Earnings

This table compares Shenandoah Telecommunications and Deutsche Telekom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shenandoah Telecommunications	$357.85 million	2.48	-$39.39 million	($0.80)	-20.10
Deutsche Telekom	$134.70 billion	1.23	$10.87 billion	$2.09	16.21

Deutsche Telekom has higher revenue and earnings than Shenandoah Telecommunications. Shenandoah Telecommunications is trading at a lower price-to-earnings ratio than Deutsche Telekom, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Shenandoah Telecommunications and Deutsche Telekom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shenandoah Telecommunications	-11.35%	-4.64%	-2.18%
Deutsche Telekom	7.38%	10.94%	3.49%

Institutional & Insider Ownership

62.0% of Shenandoah Telecommunications shares are held by institutional investors. 5.0% of Shenandoah Telecommunications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Shenandoah Telecommunications and Deutsche Telekom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shenandoah Telecommunications	1	0	2	0	2.33
Deutsche Telekom	0	1	2	0	2.67

Shenandoah Telecommunications presently has a consensus target price of $27.50, indicating a potential upside of 71.02%. Given Shenandoah Telecommunications’ higher possible upside, research analysts clearly believe Shenandoah Telecommunications is more favorable than Deutsche Telekom.

Summary

Deutsche Telekom beats Shenandoah Telecommunications on 8 of the 13 factors compared between the two stocks.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company, together with its subsidiaries, provides a range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States. It operates in two segments, Broadband and Tower. The company Broadband segment offers broadband, video, and voice services to residential and commercial customers in Virginia, West Virginia, Maryland, Pennsylvania, and Kentucky through hybrid fiber coaxial cable under the Shentel brand; and fiber optic services under the Glo Fiber brand name. This segment also leases dark fiber and provides Ethernet and wavelength fiber optic services to enterprise and wholesale customers under the Glo Fiber Enterprise and Glo Fiber Wholesale brand names; and provides voice data and DSL telephone services. The Tower segment owns macro cellular towers and leases colocation space to the wireless communications providers. Shenandoah Telecommunications Company was founded in 1902 and is based in Edinburg, Virginia.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.