Critical Analysis: Fusion Telecommunications Int'l (FSNN) versus Multiband (MBND)

Multiband (NASDAQ: MBND) and Fusion Telecommunications Int'l (NASDAQ:FSNN) are both small-cap telecommunications services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Risk & Volatility

Multiband has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Fusion Telecommunications Int'l has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Multiband and Fusion Telecommunications Int'l, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Multiband 0 0 0 0 N/A
Fusion Telecommunications Int'l 0 0 2 0 3.00

Fusion Telecommunications Int'l has a consensus target price of $4.00, indicating a potential upside of 5.54%.

Profitability

This table compares Multiband and Fusion Telecommunications Int'l’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Multiband N/A N/A N/A
Fusion Telecommunications Int'l -10.36% -276.63% -11.17%

Earnings & Valuation

This table compares Multiband and Fusion Telecommunications Int'l’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Multiband N/A N/A N/A $0.20 N/A
Fusion Telecommunications Int'l $122.04 million 0.69 -$12.71 million ($0.81) -4.68

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

Institutional and Insider Ownership

23.1% of Fusion Telecommunications Int'l shares are held by institutional investors. 19.1% of Fusion Telecommunications Int'l 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.

Summary

Fusion Telecommunications Int'l beats Multiband on 5 of the 9 factors compared between the two stocks.

About Multiband

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.

About Fusion Telecommunications Int'l

Fusion Telecommunications International, Inc. is a United States-based provider of integrated cloud solutions, including cloud voice, cloud connectivity, cloud infrastructure, cloud computing, and managed cloud-based applications to businesses, and voice over Internet Protocol (VoIP)-based voice services to carriers. The Company operates through two segments: Business Services and Carrier Services. Through Business Services segment, it provides cloud voice, cloud connectivity, cloud infrastructure, cloud computing and managed cloud-based applications to businesses of all sizes. Its suite of business services includes unified communications as a service, session initiation protocol trunking solution and file sharing solution. The Carrier Services segment includes termination of domestic and international carrier traffic utilizing VoIP technology. It offers solutions to small, medium and large businesses. It offers domestic and international VoIP services to carriers around the world.

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