FairPoint Communications (NASDAQ: FRP) is one of 47 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it compare to its rivals? We will compare FairPoint Communications to similar companies based on the strength of its risk, dividends, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares FairPoint Communications and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FairPoint Communications -11.81% N/A -7.88%
FairPoint Communications Competitors 0.68% -0.37% 1.46%

Volatility & Risk

FairPoint Communications has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, FairPoint Communications’ rivals have a beta of 1.07, meaning that their average stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for FairPoint Communications and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FairPoint Communications 0 1 0 0 2.00
FairPoint Communications Competitors 614 1688 1944 74 2.34

FairPoint Communications currently has a consensus price target of $17.00, suggesting a potential upside of 6.58%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 35.23%. Given FairPoint Communications’ rivals stronger consensus rating and higher possible upside, analysts plainly believe FairPoint Communications has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

88.6% of FairPoint Communications shares are owned by institutional investors. Comparatively, 56.0% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 7.6% of FairPoint Communications shares are owned by insiders. Comparatively, 4.4% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares FairPoint Communications and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
FairPoint Communications N/A N/A 7.03
FairPoint Communications Competitors $12.75 billion $4.25 billion 1.45

FairPoint Communications’ rivals have higher revenue and earnings than FairPoint Communications. FairPoint Communications is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

FairPoint Communications rivals beat FairPoint Communications on 8 of the 11 factors compared.

FairPoint Communications Company Profile

FairPoint Communications, Inc. is a provider of data, voice and communications services to business, wholesale and residential customers within its service territories. The Company offers its customers a suite of services, such as Ethernet, Session Initiation Protocol Trunking (SIP-Trunking), hosted Primary Branch Exchange (hosted PBX), managed services, data center colocation services, high capacity data transport and other Internet protocol (IP)-based services over its fiber-based network. It also offers Internet access, high-speed data, and local and long distance voice services. It provides services, such as Data and Internet Services, which include optical, Ethernet, Ethernet virtual circuit technology for cellular backhaul and private line special access services. It offers Voice Services, which include Local Calling Services, Long Distance Services and 9-1-1 Services. It also offers Network Transport Services, Interstate Access Charges and Intrastate Access Charges.

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