GTT Communications (NYSE:GTT) and Fusion Telecommunications International (NASDAQ:FSNN) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Earnings and Valuation
This table compares GTT Communications and Fusion Telecommunications International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GTT Communications||$827.90 million||1.82||-$71.50 million||$0.24||114.50|
|Fusion Telecommunications International||$150.53 million||0.94||-$14.01 million||($1.09)||-1.58|
Fusion Telecommunications International has lower revenue, but higher earnings than GTT Communications. Fusion Telecommunications International is trading at a lower price-to-earnings ratio than GTT Communications, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
85.1% of GTT Communications shares are owned by institutional investors. Comparatively, 14.3% of Fusion Telecommunications International shares are owned by institutional investors. 23.0% of GTT Communications shares are owned by company insiders. Comparatively, 19.1% of Fusion Telecommunications International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of recent recommendations for GTT Communications and Fusion Telecommunications International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fusion Telecommunications International||0||0||1||0||3.00|
GTT Communications currently has a consensus price target of $48.44, suggesting a potential upside of 76.29%. Given GTT Communications’ higher probable upside, equities research analysts plainly believe GTT Communications is more favorable than Fusion Telecommunications International.
Risk & Volatility
GTT Communications has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Fusion Telecommunications International has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.
This table compares GTT Communications and Fusion Telecommunications International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fusion Telecommunications International||-13.27%||N/A||-9.99%|
GTT Communications beats Fusion Telecommunications International on 8 of the 13 factors compared between the two stocks.
About GTT Communications
GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers worldwide. The company provides private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless access services; managed equipment and security services; and voice and unified communications services consisting of SIP trunking and enterprise PBX services. It also offers video transport services for the transmission of live events, sport, entertainment, and news to broadcasters and cable programming providers; and network access 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 Fusion Telecommunications International
Fusion Connect, Inc. provides integrated cloud solutions to small, medium, and large businesses. Its proprietary service platform enables the integration of solutions in the cloud, including cloud voice and unified communications, contact center, cloud connectivity, and cloud computing, as well as additional cloud services, such as storage and security. The company serves associations, governments, contact centers, and healthcare and legal industries. Fusion Connect, Inc. is based in New York, New York.
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