Reviewing pdvWireless (PDVW) & Windstream (WIN)

pdvWireless (NASDAQ: PDVW) and Windstream (NASDAQ:WIN) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares pdvWireless and Windstream’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
pdvWireless $4.79 million 89.42 -$39.18 million ($2.72) -10.88
Windstream $5.85 billion 0.05 -$2.12 billion ($1.63) -0.91

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

Profitability

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

Net Margins Return on Equity Return on Assets
pdvWireless -613.47% -17.38% -16.07%
Windstream -36.16% -191.89% -2.22%

Dividends

Windstream pays an annual dividend of $0.15 per share and has a dividend yield of 10.1%. pdvWireless does not pay a dividend. Windstream pays out -9.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

90.6% of pdvWireless shares are owned by institutional investors. Comparatively, 55.1% of Windstream shares are owned by institutional investors. 10.9% of pdvWireless shares are owned by company insiders. Comparatively, 1.0% of Windstream shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for pdvWireless and Windstream, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
pdvWireless 0 0 1 0 3.00
Windstream 3 1 1 0 1.60

pdvWireless presently has a consensus target price of $59.00, suggesting a potential upside of 99.32%. Windstream has a consensus target price of $1.96, suggesting a potential upside of 32.60%. Given pdvWireless’ stronger consensus rating and higher probable upside, equities research analysts clearly believe pdvWireless is more favorable than Windstream.

Volatility & Risk

pdvWireless has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Windstream has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Summary

pdvWireless beats Windstream on 8 of the 14 factors compared between the two stocks.

About pdvWireless

pdvWireless, Inc. operates as a wireless communications carrier, and provider of network and mobile communication solutions to infrastructure and enterprise customers. The company is deploying push-to-talk networks and two-way radio service to businesses in industry verticals, such as construction, distribution, transportation, field services, waste management, and hospitality. It offers DispatchPlus service, which combines pdvConnect, a proprietary suite of mobile communication and workforce management applications with digital network architecture and mobile devices supplied by Motorola Solutions, Inc. The company's mobile communication and workforce management solutions enable businesses to locate and communicate with their field workers, as well as enhance the documentation of work events and job status. pdvWireless, Inc. primarily markets its DispatchPlus service indirectly through third-party dealers, with sales, marketing, and advertising support from its internal sales and marketing team. The company was formerly known as Pacific DataVision, Inc. and changed its name to pdvWireless, Inc. in November 2015. pdvWireless, Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.

About Windstream

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; video entertainment service 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, home networking gateways, and personal computers; and sells home phones. The company was incorporated in 2013 and is based in Little Rock, Arkansas.

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