GTT Communications (NYSE:GTT) and SMARTONE TELECO/S (OTCMKTS:STTFY) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Risk & Volatility
GTT Communications has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, SMARTONE TELECO/S has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for GTT Communications and SMARTONE TELECO/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GTT Communications presently has a consensus target price of $25.21, indicating a potential upside of 87.89%. Given GTT Communications’ higher probable upside, analysts clearly believe GTT Communications is more favorable than SMARTONE TELECO/S.
Insider and Institutional Ownership
70.8% of GTT Communications shares are held by institutional investors. 40.8% of GTT Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares GTT Communications and SMARTONE TELECO/S’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GTT Communications||$1.49 billion||0.51||-$243.40 million||($1.59)||-8.44|
|SMARTONE TELECO/S||$1.28 billion||0.83||$78.62 million||N/A||N/A|
SMARTONE TELECO/S has lower revenue, but higher earnings than GTT Communications.
This table compares GTT Communications and SMARTONE TELECO/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
GTT Communications beats SMARTONE TELECO/S on 6 of the 11 factors compared between the two stocks.
About GTT Communications
GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally. The company offers private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless Internet access services; managed equipment, security, and hosting services; and voice services consisting of session initiation protocol trunking and hosted private branch exchange services. It also provides transport and infrastructure services enabling cloud-based applications and the transport of high volume data between data centers, enterprise office locations, and media hubs; video transport services to support broadcast quality transmission of live events, sports entertainment, and news to media and entertainment industry; wavelength services to deliver scalable high-performance optical connectivity; Ethernet services that enable to design network equipment; and colocation, turnkey, duct, and dark fiber services. The company's IP network consists of approximately 600 points of presence. GTT Communications, Inc. markets its products and services through a network of direct sales force and indirect sales channels. The company was formerly known as Global Telecom & Technology, Inc. and changed its name to GTT Communications, Inc. in January 2014. GTT Communications, Inc. was founded in 2005 and is headquartered in McLean, Virginia.
About SMARTONE TELECO/S
SmarTone Telecommunications Holdings Limited, an investment holding company, provides mobile telecommunication services in Hong Kong and Macau. The company offers voice, multimedia, and mobile and fixed fiber broadband services for the consumer and corporate markets. It is also involved in the sale of handsets and accessories; issuance of guaranteed notes; and provision of customer support and telemarketing services. The company was founded in 1992 and is headquartered in Kwun Tong, Hong Kong. SmarTone Telecommunications Holdings Limited is a subsidiary of Sun Hung Kai Properties Limited.
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