BCE (NYSE:BCE) and Alaska Communications Systems Group (NASDAQ:ALSK) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
This table compares BCE and Alaska Communications Systems Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alaska Communications Systems Group||3.91%||5.46%||2.01%|
Volatility & Risk
BCE has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Alaska Communications Systems Group has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
This is a breakdown of current recommendations for BCE and Alaska Communications Systems Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alaska Communications Systems Group||0||0||1||0||3.00|
BCE currently has a consensus target price of $47.50, indicating a potential upside of 8.08%. Given BCE’s higher probable upside, research analysts plainly believe BCE is more favorable than Alaska Communications Systems Group.
Insider & Institutional Ownership
44.1% of BCE shares are held by institutional investors. Comparatively, 41.7% of Alaska Communications Systems Group shares are held by institutional investors. 0.2% of BCE shares are held by company insiders. Comparatively, 6.9% of Alaska Communications Systems Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
BCE pays an annual dividend of $2.26 per share and has a dividend yield of 5.1%. Alaska Communications Systems Group does not pay a dividend. BCE pays out 83.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BCE has raised its dividend for 2 consecutive years.
Earnings & Valuation
This table compares BCE and Alaska Communications Systems Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BCE||$18.11 billion||2.18||$2.26 billion||$2.71||16.22|
|Alaska Communications Systems Group||$232.47 million||0.41||$9.08 million||$0.17||10.53|
BCE has higher revenue and earnings than Alaska Communications Systems Group. Alaska Communications Systems Group is trading at a lower price-to-earnings ratio than BCE, indicating that it is currently the more affordable of the two stocks.
BCE beats Alaska Communications Systems Group on 13 of the 17 factors compared between the two stocks.
BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers integrated digital wireless voice and data communications products and services. The Bell Wireline segment provides data, including Internet access, Internet protocol TV and telephony, local telephone, and long distance, as well as other communications services and products; and satellite TV and connectivity services. This segment also offers home security and monitoring services; competitive local exchange carrier services; business service solutions, such as hosting and cloud, managed, professional, and infrastructure services; virtual private networks, point-to-point data networks, and international network solutions; and Web and audio conferencing, and email solutions. The Bell Media segment offers conventional, specialty, and pay TV; and digital media, radio broadcasting, and out-of-home advertising services, as well as sports and other event production and broadcasting services. This segment owns and operates approximately 30 conventional TV stations; 34 specialty and 4 pay TV channels; 105 licensed radio stations; 31,000 advertising faces; and 200 Websites and approximately 30 apps. The company also distributes mobile products. BCE Inc. offers its services through a network of corporate and dealer-owned retail stores, national retailers, and call center representatives, as well as Websites and door-to-door sales representatives. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.
About Alaska Communications Systems Group
Alaska Communications Systems Group, Inc., through its subsidiaries, provides broadband telecommunication and managed information technology services to business, wholesale, and consumer customers in the state of Alaska. Its services include voice and broadband services; and managed IT services comprising remote network monitoring and support service, managed IT security and IT professional services, and long distance services primarily over its own terrestrial network to business and wholesale customers. The company's business customers comprise large enterprises; federal, state, and local governments; and small and medium business. It also provides voice and broadband services to residential customers; voice and broadband origination and termination services to inter and intrastate carriers; and access and support services. In addition, Alaska Communications Systems Group, Inc. owns and operates AKORN, an undersea fiber optic cable systems. The company markets and sells its products through direct sales channels. Alaska Communications Systems Group, Inc. was founded in 1998 and is based in Anchorage, Alaska.
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