Analyzing VimpelCom (VEON) and Lumos Networks Corp. (LMOS)
VimpelCom (NASDAQ: VEON) and Lumos Networks Corp. (NASDAQ:LMOS) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.
Insider and Institutional Ownership
12.5% of VimpelCom shares are held by institutional investors. Comparatively, 79.7% of Lumos Networks Corp. shares are held by institutional investors. 8.7% of Lumos Networks Corp. 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.
Volatility and Risk
VimpelCom has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, Lumos Networks Corp. has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
This table compares VimpelCom and Lumos Networks Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lumos Networks Corp.||-1.70%||-2.79%||-0.51%|
Valuation and Earnings
This table compares VimpelCom and Lumos Networks Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|VimpelCom||$9.41 billion||0.78||$3.28 billion||N/A||N/A|
|Lumos Networks Corp.||$214.94 million||2.00||$85.48 million||N/A||N/A|
VimpelCom has higher revenue and earnings than Lumos Networks Corp..
This is a summary of current recommendations and price targets for VimpelCom and Lumos Networks Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lumos Networks Corp.||0||3||1||0||2.25|
VimpelCom currently has a consensus price target of $5.50, indicating a potential upside of 31.26%. Lumos Networks Corp. has a consensus price target of $19.00, indicating a potential upside of 5.85%. Given VimpelCom’s stronger consensus rating and higher probable upside, research analysts clearly believe VimpelCom is more favorable than Lumos Networks Corp..
VimpelCom pays an annual dividend of $0.26 per share and has a dividend yield of 6.2%. Lumos Networks Corp. does not pay a dividend.
VimpelCom beats Lumos Networks Corp. on 8 of the 13 factors compared between the two stocks.
VimpelCom Company Profile
VEON Ltd., formerly VimpelCom Ltd., is a provider of communications services. The Company operates as personal internet platform. It integrates powerful data analytics and artificial intelligence, with a fresh take on messaging capabilities. It enables its users and communities to connect by voice, text, picture and video through a designed interface.
Lumos Networks Corp. Company Profile
Lumos Networks Corp. is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region with a network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company serves carrier, business and residential customers over its fiber network offering data, voice and Internet protocol (IP) services. The Company operates through three segments: Data, Residential and Small Business (R&SB), and RLEC Access. The Data segment includes the Company’s enterprise data, transport and Fiber to the Cell (FTTC) product groups. The R&SB segment includes voice and IP services products targeted to its residential and small business customers. The RLEC Access segment provides other carrier customers access to the Company’s network within the Company’s rural local exchange carrier (RLEC) territories through switched access services.
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