Head-To-Head Review: Shenandoah Telecommunications (SHEN) and Multiband Corp (MBND)

Shenandoah Telecommunications (NASDAQ: SHEN) and Multiband Corp (NASDAQ:MBND) are both small-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Shenandoah Telecommunications and Multiband Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shenandoah Telecommunications 0 0 1 0 3.00
Multiband Corp 0 0 0 0 N/A

Shenandoah Telecommunications currently has a consensus target price of $35.00, suggesting a potential downside of 5.66%.

Profitability

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

Net Margins Return on Equity Return on Assets
Shenandoah Telecommunications 0.91% 4.04% 0.83%
Multiband Corp N/A N/A N/A

Risk & Volatility

Shenandoah Telecommunications has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Multiband Corp has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Dividends

Shenandoah Telecommunications pays an annual dividend of $0.26 per share and has a dividend yield of 0.7%. Multiband Corp does not pay a dividend. Shenandoah Telecommunications pays out 216.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

48.9% of Shenandoah Telecommunications shares are owned by institutional investors. 7.2% of Shenandoah Telecommunications shares are owned by company 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.

Earnings and Valuation

This table compares Shenandoah Telecommunications and Multiband Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Shenandoah Telecommunications $535.29 million 3.41 -$890,000.00 $0.12 309.17
Multiband Corp N/A N/A N/A $0.20 N/A

Multiband Corp has higher revenue, but lower earnings than Shenandoah Telecommunications. Multiband Corp is trading at a lower price-to-earnings ratio than Shenandoah Telecommunications, indicating that it is currently the more affordable of the two stocks.

Summary

Shenandoah Telecommunications beats Multiband Corp on 8 of the 11 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 Multiband Corp

Multiband Corporation provides contract installation services for the pay television industry (including satellite and broadband cable operators), Internet providers and retailers, voice, data and video services to residents of multi-dwelling units. It operates in three segments: Field Services (FS), where the Company provides installation services to pay television (satellite and broadband cable) providers, Internet providers and commercial customers; Multi-Dwelling Unit (MDU), where the Company bills voice, Internet and video services to subscribers as owner/operator and also acts as a master service operator for DIRECTV, receiving net cash payments for managing video subscribers through its network of system operators, and Engineering, Energy & Construction (EE&C) where the Company provides engineering and construction services for the wired and wireless telecommunications industry, including public safety networks. In August 2013, Goodman Networks Inc acquired the Company.

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