Analyzing Liberty Latin America (LILA) and Ruckus Wireless (RKUS)

Liberty Latin America (NASDAQ: LILA) and Ruckus Wireless (NYSE:RKUS) are both telecommunications services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

20.9% of Liberty Latin America shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Liberty Latin America and Ruckus Wireless’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Latin America $3.59 billion 1.08 -$772.02 million ($4.51) -5.01
Ruckus Wireless N/A N/A N/A $0.05 257.40

Ruckus Wireless has lower revenue, but higher earnings than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Ruckus Wireless, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Liberty Latin America and Ruckus Wireless, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Latin America 2 3 2 0 2.00
Ruckus Wireless 0 0 0 0 N/A

Liberty Latin America currently has a consensus target price of $26.83, indicating a potential upside of 18.84%. Given Liberty Latin America’s higher possible upside, equities analysts clearly believe Liberty Latin America is more favorable than Ruckus Wireless.

Profitability

This table compares Liberty Latin America and Ruckus Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Latin America N/A N/A N/A
Ruckus Wireless -0.92% -1.17% -0.88%

Summary

Liberty Latin America beats Ruckus Wireless on 7 of the 9 factors compared between the two stocks.

About Liberty Latin America

Liberty Latin America Ltd is a telecommunications company. The Company is focused on offering communications and entertainment services that deliver to residential and business customers include video, broadband Internet, telephony and mobile services. The Company offers a triple play of bundled services of digital video, Internet and telephony in one subscription. The Company’s business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology (IT) solutions. It also operates an extensive sub-sea and terrestrial fiber optic cable network that connects.

About Ruckus Wireless

Ruckus Wireless, Inc. is a supplier of advanced (Wi-Fi) solutions. The Company’s solutions, which it call Smart Wi-Fi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with wireless traffic demands. It operates through selling controllers and access points along with related software and services segment. The Company markets and sells its products and technology through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality, such as enhanced reliability, extended range and scalability. Its products include controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions, including reporting and analytics, and Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices.

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