Critical Survey: Altice USA (NASDAQ:ATUS) and Shenandoah Telecommunications (SHEN)

Shenandoah Telecommunications (NASDAQ: SHEN) and Altice USA (NASDAQ:ATUS) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Shenandoah Telecommunications and Altice USA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Shenandoah Telecommunications $619.55 million 2.79 $276.34 million ($0.11) -320.00
Altice USA $9.20 billion 2.44 $3.69 billion N/A N/A

Altice USA has higher revenue and earnings than Shenandoah Telecommunications.

Dividends

Shenandoah Telecommunications pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. Altice USA does not pay a dividend. Shenandoah Telecommunications pays out -227.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Shenandoah Telecommunications and Altice USA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shenandoah Telecommunications 0 0 1 0 3.00
Altice USA 0 5 7 0 2.58

Shenandoah Telecommunications currently has a consensus target price of $35.00, suggesting a potential downside of 0.57%. Altice USA has a consensus target price of $36.42, suggesting a potential upside of 19.75%. Given Altice USA’s higher probable upside, analysts clearly believe Altice USA is more favorable than Shenandoah Telecommunications.

Insider and Institutional Ownership

49.3% of Shenandoah Telecommunications shares are held by institutional investors. 7.2% of Shenandoah Telecommunications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Shenandoah Telecommunications and Altice USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shenandoah Telecommunications -0.89% 5.43% 1.11%
Altice USA -20.39% -63.90% -5.28%

Summary

Shenandoah Telecommunications beats Altice USA on 9 of the 13 factors compared between the two stocks.

About Shenandoah Telecommunications

Shenandoah Telecommunications Company is a telecommunications holding company. The Company’s segments are Wireless, Cable, Wireline and Other. The Company, through its operating subsidiaries, provides both regulated and unregulated telecommunications services to end user customers and other telecommunications providers in Virginia, West Virginia, central Pennsylvania, western Maryland, and portions of Kentucky and Ohio. The business of the Wireless segment is conducted principally by the Company’s subsidiary, Shenandoah Personal Communications, LLC (PCS). The business of the Company’s Cable segment is conducted through Shenandoah Cable Television, LLC (Shenandoah Cable). The Wireline segment provides regulated and unregulated voice services, digital subscriber line (DSL) Internet access, cable modem and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia.

About Altice USA

Altice USA, Inc. is engaged in providing broadband communications and video services in the United States. The Company’s segments include Cablevision and Cequel. Cablevision provides broadband, pay television and telephony services to residential and business customers in and around the New York metropolitan area. Cequel provides broadband, pay television and telephony services to residential and business customers in the south-central United States. It also provides services through ten states of Texas, West Virginia, Louisiana, Arkansas, North Carolina, Oklahoma, Arizona, California, Missouri and Ohio. The Company also provides Wi-Fi hotspot access content and advertising services. Broadband provides services, such as video streaming, content downloading for time-shifted video consumption and other applications delivered over OTT platforms. Pay Television provides services through cable network. Video services delivered over DSL networks.

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