West Corp (WSTC) & The Competition Financial Survey

West Corp (NASDAQ: WSTC) is one of 67 publicly-traded companies in the “Communications & Networking” industry, but how does it compare to its competitors? We will compare West Corp to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares West Corp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Corp 7.79% N/A 5.18%
West Corp Competitors -2.25% -6.08% 0.24%

Analyst Recommendations

This is a breakdown of recent ratings for West Corp and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Corp 0 5 0 0 2.00
West Corp Competitors 372 2422 3964 159 2.57

West Corp currently has a consensus price target of $24.50, indicating a potential upside of 4.26%. As a group, “Communications & Networking” companies have a potential upside of 22.33%. Given West Corp’s competitors stronger consensus rating and higher probable upside, analysts clearly believe West Corp has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares West Corp and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
West Corp $2.29 billion $636.33 million 9.36
West Corp Competitors $2.41 billion $618.60 million 28.71

West Corp’s competitors have higher revenue, but lower earnings than West Corp. West Corp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

67.4% of West Corp shares are held by institutional investors. Comparatively, 64.2% of shares of all “Communications & Networking” companies are held by institutional investors. 4.6% of West Corp shares are held by company insiders. Comparatively, 13.4% of shares of all “Communications & Networking” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

West Corp has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, West Corp’s competitors have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Dividends

West Corp pays an annual dividend of $0.45 per share and has a dividend yield of 1.9%. West Corp pays out 17.9% of its earnings in the form of a dividend. As a group, “Communications & Networking” companies pay a dividend yield of 2.0% and pay out 44.3% of their earnings in the form of a dividend.

Summary

West Corp competitors beat West Corp on 8 of the 15 factors compared.

West Corp Company Profile

West Corporation is a provider of communication and network infrastructure services. The Company helps its clients communicate, collaborate and connect with their audiences through a portfolio of solutions that include unified communications services, safety services, and interactive services, such as automated notifications, specialized agent services and telecom services. The Company’s segments include Unified Communications Services, which includes collaboration services, Unified Communications as a Service (UCaaS) and telecom services; Safety Services, which includes carrier services, government solutions and advanced services; Interactive Services, including outbound (proactive notifications-voice, text/short messaging service (SMS) and chat), inbound speech solutions (interactive voice response or IVR), Web, mobile and professional services, and Specialized Agent Services, which includes healthcare advocacy services, cost management services and revenue generation.

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