Financial Analysis: Windstream (WINMQ) versus Its Rivals
Windstream (OTCMKTS: WINMQ) is one of 76 publicly-traded companies in the “Telephone communication, except radio” industry, but how does it weigh in compared to its rivals? We will compare Windstream to similar businesses based on the strength of its risk, earnings, dividends, profitability, analyst recommendations, valuation and institutional ownership.
Insider and Institutional Ownership
1.1% of Windstream shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Telephone communication, except radio” companies are owned by institutional investors. 1.2% of Windstream shares are owned by insiders. Comparatively, 6.7% of shares of all “Telephone communication, except radio” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Windstream and its rivals revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Windstream||$5.71 billion||-$723.00 million||-0.01|
|Windstream Competitors||$17.20 billion||$1.58 billion||35.34|
Windstream’s rivals have higher revenue and earnings than Windstream. Windstream is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
Windstream has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Windstream’s rivals have a beta of 0.65, meaning that their average share price is 35% less volatile than the S&P 500.
This is a breakdown of current recommendations for Windstream and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Telephone communication, except radio” companies have a potential upside of 27.38%. Given Windstream’s rivals higher possible upside, analysts plainly believe Windstream has less favorable growth aspects than its rivals.
This table compares Windstream and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Windstream rivals beat Windstream on 9 of the 10 factors compared.
Windstream Holdings, Inc. provides network communications and technology solutions in the United States. Its Consumer & Small Business segment offers services, including traditional local and long-distance voice services, and high-speed Internet services; and value-added services, such as security and online back-up. It also offers consumer video services; premium broadband and video entertainment services under the Kinetic brand; voice and Web conferencing products; and advanced hosted-voice, network management, and business continuity services, as well as owns and operates cable television franchises. This segment serves approximately 1.4 million residential and small business customers. The company's Enterprise segment offers integrated voice and data services, which deliver voice and broadband services over a single Internet connection, data transport services, and multi-site networking services; and other data services comprising cloud computing, and collocation and managed services as an alternative to traditional information technology infrastructure. Its Wholesale segment provides network bandwidth to other telecommunications carriers, network operators, and content providers; fiber-to-the-tower connections to support the wireless backhaul market; voice and data carrier services to other communications providers and large scale purchasers; and special access services and time division multiplexing private line transport. The company's Consumer CLEC segment offers traditional voice and long-distance services, nationwide Internet access services, and dial-up and high-speed, as well as online backup and various email services. Windstream Holdings, Inc. also leases and sells broadband modems and home networking gateways; and sells computers and phones. The company was incorporated in 2013 and is based in Little Rock, Arkansas. On February 25, 2019, Windstream Holdings, Inc. along with its 202 affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of New York.
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