Analyzing Level 3 Communications (LVLT) and The Competition
Level 3 Communications (NYSE: LVLT) is one of 45 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its peers? We will compare Level 3 Communications to similar businesses based on the strength of its valuation, dividends, risk, earnings, analyst recommendations, institutional ownership and profitability.
This is a breakdown of current recommendations and price targets for Level 3 Communications and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Level 3 Communications||1||11||2||0||2.07|
|Level 3 Communications Competitors||530||1517||1824||65||2.36|
Level 3 Communications presently has a consensus target price of $60.43, indicating a potential upside of 9.72%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 44.77%. Given Level 3 Communications’ peers stronger consensus rating and higher possible upside, analysts clearly believe Level 3 Communications has less favorable growth aspects than its peers.
This table compares Level 3 Communications and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Level 3 Communications||7.85%||5.80%||2.55%|
|Level 3 Communications Competitors||0.59%||-0.73%||1.36%|
Institutional & Insider Ownership
98.8% of Level 3 Communications shares are held by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.5% of Level 3 Communications shares are held by company insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies 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.
Earnings & Valuation
This table compares Level 3 Communications and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Level 3 Communications||$8.17 billion||$2.66 billion||31.30|
|Level 3 Communications Competitors||$13.52 billion||$4.52 billion||4.90|
Level 3 Communications’ peers have higher revenue and earnings than Level 3 Communications. Level 3 Communications is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
Level 3 Communications has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Level 3 Communications’ peers have a beta of 0.95, suggesting that their average share price is 5% less volatile than the S&P 500.
Level 3 Communications peers beat Level 3 Communications on 7 of the 13 factors compared.
Level 3 Communications Company Profile
Level 3 Communications, Inc. is a provider of a range of integrated communications services. The Company’s operating segments include North America, EMEA and Latin America. The North America includes operations in Atlanta, Georgia; Littleton, Colorado; Miami, Florida; Montreal, Canada; New York, New York; Phoenix, Arizona; Pittsburgh, Pennsylvania; Southfield, Michigan, and Tulsa, Oklahoma. The Europe segment includes operations in Basingstoke, England; Crewe, England; Dublin, Ireland; London, England; Amsterdam, The Netherlands, and Paris, France. The Latin America includes operations in Colombia; Buenos Aires, Argentina; Caracas, Venezuela; Lima, Peru; Quito, Ecuador; Santiago, Chile, and Sao Paulo, Brazil. It offers optical, Internet Protocol, computing and storage technologies. It offers a range of communications services, including Internet Protocol (IP) and data services, transport and fiber services, colocation and data center services, security services and voice services.
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