Windstream (WIN) vs. The Competition Head-To-Head Contrast

Windstream (NASDAQ: WIN) is one of 73 public companies in the “Telephone communication, except radio” industry, but how does it compare to its rivals? We will compare Windstream to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, institutional ownership, profitability and earnings.

Analyst Ratings

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This is a breakdown of current recommendations and price targets for Windstream and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Windstream 3 1 1 0 1.60
Windstream Competitors 608 1862 1945 98 2.34

Windstream presently has a consensus price target of $1.96, suggesting a potential upside of 26.61%. As a group, “Telephone communication, except radio” companies have a potential upside of 64.99%. Given Windstream’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Windstream has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

55.2% of Windstream shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Telephone communication, except radio” companies are owned by institutional investors. 1.0% of Windstream shares are owned by company insiders. Comparatively, 7.3% of shares of all “Telephone communication, except radio” companies are owned 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 Windstream and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Windstream $5.85 billion -$2.12 billion -0.95
Windstream Competitors $17.40 billion $2.02 billion 17.82

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

Dividends

Windstream pays an annual dividend of $0.15 per share and has a dividend yield of 9.7%. Windstream pays out -9.2% of its earnings in the form of a dividend. As a group, “Telephone communication, except radio” companies pay a dividend yield of 4.0% and pay out 71.2% of their earnings in the form of a dividend. Windstream is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk and Volatility

Windstream has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Windstream’s rivals have a beta of 0.59, indicating that their average stock price is 41% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Windstream -36.16% -191.89% -2.22%
Windstream Competitors -12.56% -11.21% -0.99%

Summary

Windstream rivals beat Windstream on 12 of the 15 factors compared.

Windstream Company Profile

Windstream Holdings, Inc. provides network communications and technology solutions in the United States. Its Consumer & Small Business segment offers services, including traditional local and long-distance voice services, and high-speed Internet services; and value-added services, such as security and online back-up. It also offers consumer video services; video entertainment service under the Kinetic brand; voice and Web conferencing products; and advanced hosted-voice, network management, and business continuity services, as well as owns and operates cable television franchises. This segment serves approximately 1.4 million residential and small business customers. The company's Enterprise segment offers integrated voice and data services, which deliver voice and broadband services over a single Internet connection, data transport services, and multi-site networking services; and other data services comprising cloud computing, and collocation and managed services as an alternative to traditional information technology infrastructure. Its Wholesale segment provides network bandwidth to other telecommunications carriers, network operators, and content providers; fiber-to-the-tower connections to support the wireless backhaul market; voice and data carrier services to other communications providers and large scale purchasers; and special access services and time division multiplexing private line transport. The company's Consumer CLEC segment offers traditional voice and long-distance services, nationwide Internet access services, and dial-up and high-speed, as well as online backup and various email services. Windstream Holdings, Inc. also leases and sells broadband modems, home networking gateways, and personal computers; and sells home phones. The company was incorporated in 2013 and is based in Little Rock, Arkansas.

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