Financial Review: Anterix (NASDAQ:ATEX) vs. Freenet (OTCMKTS:FRTAF)

Freenet (OTCMKTS:FRTAF) and Anterix (NASDAQ:ATEX) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

87.7% of Anterix shares are held by institutional investors. 40.0% of Anterix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Freenet and Anterix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freenet	10.04%	17.88%	7.85%
Anterix	933.03%	-10.65%	-6.06%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Freenet and Anterix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freenet	0	2	1	1	2.75
Anterix	0	3	1	1	2.60

Anterix has a consensus target price of $120.00, suggesting a potential upside of 50.68%. Given Anterix’s higher possible upside, analysts plainly believe Anterix is more favorable than Freenet.

Valuation & Earnings

This table compares Freenet and Anterix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freenet	$2.76 billion	1.16	$306.95 million	$2.56	10.55
Anterix	$6.50 million	240.27	$90.64 million	$3.50	22.75

Freenet has higher revenue and earnings than Anterix. Freenet is trading at a lower price-to-earnings ratio than Anterix, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Freenet has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Anterix has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

Anterix beats Freenet on 7 of the 12 factors compared between the two stocks.

About Freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.

About Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.