SBA Communications (SBAC) and Towerstream (TWER) Critical Analysis
SBA Communications (NASDAQ: SBAC) and Towerstream (OTCMKTS:TWER) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
This table compares SBA Communications and Towerstream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
96.2% of SBA Communications shares are owned by institutional investors. 2.4% of SBA Communications shares are owned by insiders. Comparatively, 6.4% of Towerstream shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
SBA Communications has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Towerstream has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for SBA Communications and Towerstream, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SBA Communications currently has a consensus target price of $158.23, indicating a potential downside of 5.03%. Given SBA Communications’ higher possible upside, equities research analysts clearly believe SBA Communications is more favorable than Towerstream.
Earnings & Valuation
This table compares SBA Communications and Towerstream’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SBA Communications||$1.63 billion||11.99||$76.23 million||$0.84||198.35|
|Towerstream||$26.90 million||0.06||-$20.43 million||N/A||N/A|
SBA Communications has higher revenue and earnings than Towerstream.
SBA Communications beats Towerstream on 9 of the 11 factors compared between the two stocks.
About SBA Communications
SBA Communications Corporation is an independent owner and operator of wireless communications tower structures, rooftops and other structures that support antennas used for wireless communications. The Company’s operating segments include site leasing and site development. The site leasing business includes segments, domestic site leasing and international site leasing. The Company’s primary business line is its site leasing business. In its site leasing business, the Company leases antenna space to wireless service providers on towers that it owns or operates, and manages rooftop and tower sites for property owners under various contractual arrangements. The Company owns approximately 25,460 towers. It also manages or leases approximately 5,500 actual or potential towers. The Company’s other business line is its site development business, through which it assists wireless service providers in developing and maintaining their own wireless service networks.
Towerstream Corporation is a provider of fixed wireless services to businesses in over 10 urban markets across the United States. The Company operates through Fixed Wireless Services (Fixed Wireless) segment. Its fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. Towerstream installs equipment on the rooftops of the buildings in which the Fixed Wireless segment customers operate and refer to these as Customer Locations. This equipment includes receivers and antennas, and a wireless connection is established between the Customer Location to one or more of its points of presence (PoPs). It provides fixed wireless broadband services to commercial customers and delivers access over a Wireless network transmitting over both regulated and unregulated radio spectrum. It provides services to business customers in various locations, including New York City, Boston, Chicago and Houston.
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