Windstream (OTCMKTS:WINMQ) and Telekom Austria (OTCMKTS:TKAGY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Telekom Austria pays an annual dividend of $0.45 per share and has a dividend yield of 3.0%. Windstream does not pay a dividend. Telekom Austria pays out 52.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Windstream and Telekom Austria’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Windstream $5.71 billion 0.00 -$723.00 million ($21.40) -0.01
Telekom Austria $5.24 billion 0.96 $287.33 million $0.85 17.84

Telekom Austria has lower revenue, but higher earnings than Windstream. Windstream is trading at a lower price-to-earnings ratio than Telekom Austria, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

1.1% of Windstream shares are owned by institutional investors. 1.2% of Windstream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Windstream and Telekom Austria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Windstream -52.19% N/A -6.78%
Telekom Austria 6.76% 12.37% 4.01%

Risk & Volatility

Windstream has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Telekom Austria has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Windstream and Telekom Austria, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Windstream 0 0 0 0 N/A
Telekom Austria 0 1 0 0 2.00

Summary

Telekom Austria beats Windstream on 8 of the 13 factors compared between the two stocks.

Windstream Company Profile

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.

Telekom Austria Company Profile

Telekom Austria Aktiengesellschaft, together with its subsidiaries, provides fixed-line and mobile communications services to individuals, commercial and non-commercial organizations, and other national and foreign carriers. Its fixed-line services include access, Internet, fixed-to-mobile calls, international traffic, voice value-added services, interconnection, call center services, data and ICT solutions, television services, and public payphone services; and mobile communications services comprise digital mobile communications services, including value-added services, text and multimedia messaging, m-commerce, and information services. The company also provides voice telephony, convergent products, Internet access, data and IT solutions, value added services, wholesale services, and IP television and payment solutions, as well as mobile telephone and satellite television services. In addition, it sells end-user terminal equipment; and sets up customer lines that include installation work. As of December 31, 2017, the company provided mobile communication services to approximately 20.7 million customers; and had approximately 6.0 million fixed-line revenue generating units. It has operations in Austria, Slovenia, Bulgaria, Belarus, Croatia, the Republic of Serbia, and the Republic of Macedonia. The company is headquartered in Vienna, Austria. Telekom Austria Aktiengesellschaft is a subsidiary of América Móvil, S.A.B. de C.V.

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