FairPoint Communications (NASDAQ: FRP) is one of 47 public companies in the “Integrated Telecommunications Services” industry, but how does it compare to its competitors? We will compare FairPoint Communications to similar businesses based on the strength of its earnings, valuation, profitability, risk, analyst recommendations, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FairPoint Communications and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FairPoint Communications 0 1 0 0 2.00
FairPoint Communications Competitors 615 1691 1947 74 2.34

FairPoint Communications currently has a consensus target price of $17.00, indicating a potential upside of 6.58%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 35.29%. Given FairPoint Communications’ competitors stronger consensus rating and higher possible upside, analysts plainly believe FairPoint Communications has less favorable growth aspects than its competitors.

Risk and Volatility

FairPoint Communications has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, FairPoint Communications’ competitors have a beta of 1.05, indicating that their average stock price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares FairPoint Communications and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
FairPoint Communications N/A N/A 7.03
FairPoint Communications Competitors $12.75 billion $4.25 billion 3.76

FairPoint Communications’ competitors have higher revenue and earnings than FairPoint Communications. FairPoint Communications is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

88.6% of FairPoint Communications shares are held by institutional investors. Comparatively, 56.0% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 7.6% of FairPoint Communications shares are held by company insiders. Comparatively, 4.4% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares FairPoint Communications and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FairPoint Communications -11.81% N/A -7.88%
FairPoint Communications Competitors 0.45% -0.34% 1.49%

Summary

FairPoint Communications competitors beat FairPoint Communications on 8 of the 11 factors compared.

FairPoint Communications Company Profile

FairPoint Communications, Inc. is a provider of data, voice and communications services to business, wholesale and residential customers within its service territories. The Company offers its customers a suite of services, such as Ethernet, Session Initiation Protocol Trunking (SIP-Trunking), hosted Primary Branch Exchange (hosted PBX), managed services, data center colocation services, high capacity data transport and other Internet protocol (IP)-based services over its fiber-based network. It also offers Internet access, high-speed data, and local and long distance voice services. It provides services, such as Data and Internet Services, which include optical, Ethernet, Ethernet virtual circuit technology for cellular backhaul and private line special access services. It offers Voice Services, which include Local Calling Services, Long Distance Services and 9-1-1 Services. It also offers Network Transport Services, Interstate Access Charges and Intrastate Access Charges.

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