Verizon Communications (NYSE: VZ) is one of 45 public companies in the “Integrated Telecommunications Services” industry, but how does it compare to its rivals? We will compare Verizon Communications to similar companies based on the strength of its institutional ownership, dividends, risk, profitability, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Verizon Communications and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Verizon Communications $123.64 billion $43.95 billion 12.59
Verizon Communications Competitors $13.52 billion $4.52 billion 5.95

Verizon Communications has higher revenue and earnings than its rivals. Verizon 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.

Analyst Ratings

This is a breakdown of current ratings for Verizon Communications and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verizon Communications 0 19 6 0 2.24
Verizon Communications Competitors 534 1540 1830 65 2.36

Verizon Communications presently has a consensus target price of $53.28, suggesting a potential upside of 8.52%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 48.52%. Given Verizon Communications’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Verizon Communications has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Verizon Communications 12.80% 58.66% 6.13%
Verizon Communications Competitors 0.68% -1.03% 1.36%

Dividends

Verizon Communications pays an annual dividend of $2.36 per share and has a dividend yield of 4.8%. Verizon Communications pays out 60.5% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.9% and pay out 1,359.0% of their earnings in the form of a dividend. Verizon Communications has increased its dividend for 10 consecutive years.

Risk and Volatility

Verizon Communications has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Verizon Communications’ rivals have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership

62.2% of Verizon Communications shares are held by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.1% of Verizon Communications shares are held by insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Verizon Communications beats its rivals on 8 of the 15 factors compared.

About Verizon Communications

Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video, data center and cloud services, security and managed network services, and local and long distance voice services. The Company has combined Yahoo! Inc.’s operating assets with its existing AOL Inc. business to create a new subsidiary, Oath Inc., owns a diverse house of more than 50 media and technology brands. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail.

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