Swisscom (OTCMKTS:SCMWY) and Fusion Telecommunications International (NASDAQ:FSNN) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Dividends

Swisscom pays an annual dividend of $1.47 per share and has a dividend yield of 3.2%. Fusion Telecommunications International does not pay a dividend. Swisscom pays out 47.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.1% of Swisscom shares are owned by institutional investors. Comparatively, 16.3% of Fusion Telecommunications International shares are owned by institutional investors. 1.0% of Swisscom shares are owned by company insiders. Comparatively, 19.1% of Fusion Telecommunications International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Swisscom and Fusion Telecommunications International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Swisscom 1 1 0 0 1.50
Fusion Telecommunications International 0 0 2 0 3.00

Fusion Telecommunications International has a consensus price target of $6.50, indicating a potential upside of 124.91%. Given Fusion Telecommunications International’s stronger consensus rating and higher possible upside, analysts clearly believe Fusion Telecommunications International is more favorable than Swisscom.

Profitability

This table compares Swisscom and Fusion Telecommunications International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Swisscom 12.92% 20.63% 6.98%
Fusion Telecommunications International -13.39% -147.98% -11.95%

Volatility & Risk

Swisscom has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Fusion Telecommunications International has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Earnings and Valuation

This table compares Swisscom and Fusion Telecommunications International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Swisscom $11.85 billion 2.02 $1.60 billion $3.08 15.00
Fusion Telecommunications International $150.53 million 1.51 -$14.01 million ($1.09) -2.65

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

Summary

Swisscom beats Fusion Telecommunications International on 8 of the 15 factors compared between the two stocks.

About Swisscom

Swisscom AG provides telecommunication services primarily in Switzerland and Italy. The company operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. It offers broadband, TV, fixed-network, and mobile phone subscription services, as well as national and international telephone, and data traffic services for residential customers, and small and medium-sized enterprises. The company also provides cloud, outsourcing, workplace, UCC, mobile phone, networking, business process optimization, SAP, Internet of Things, security and authentication, digital consulting, and software development solutions primarily for banking, hospital, and health insurance industries; fixed and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, it plans, operates, and maintains network infrastructure and related information technology (IT) systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband services, such as voice, data, and TV services, as well as video-on-demand for residential and corporate customers. Further, the company provides mobile phone services; IT and network services, and customized solutions; and online and telephone directories, as well as sells merchandise products. Additionally, it offers collection services for radio and TV license fees; radio and cross platform services for customers in the media field; and securitized radio transmissions services, as well as constructs and maintains wired and wireless networks. Swisscom AG was founded in 1998 and is headquartered in Worblaufen, Switzerland.

About Fusion Telecommunications International

Fusion Connect, Inc. provides integrated cloud solutions to small, medium, and large businesses. Its proprietary service platform enables the integration of solutions in the cloud, including cloud voice and unified communications, contact center, cloud connectivity, and cloud computing, as well as additional cloud services, such as storage and security. The company serves associations, governments, contact centers, and healthcare and legal industries. Fusion Connect, Inc. is based in New York, New York.

Receive News & Ratings for Swisscom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Swisscom and related companies with MarketBeat.com's FREE daily email newsletter.