Head to Head Comparison: magicJack VocalTec (CALL) versus Consolidated Communications (CNSL)

magicJack VocalTec (NASDAQ: CNSL) and Consolidated Communications (NASDAQ:CNSL) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Valuation & Earnings

This table compares magicJack VocalTec and Consolidated Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
magicJack VocalTec $87.99 million 1.58 -$24.96 million N/A N/A
Consolidated Communications $1.06 billion 0.87 $64.94 million $0.26 49.54

Consolidated Communications has higher revenue and earnings than magicJack VocalTec.

Risk & Volatility

magicJack VocalTec has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Consolidated Communications has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Dividends

Consolidated Communications pays an annual dividend of $1.55 per share and has a dividend yield of 12.0%. magicJack VocalTec does not pay a dividend. Consolidated Communications pays out 596.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current recommendations and price targets for magicJack VocalTec and Consolidated Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
magicJack VocalTec 0 0 0 0 N/A
Consolidated Communications 0 3 1 0 2.25

Consolidated Communications has a consensus target price of $14.67, suggesting a potential upside of 13.87%. Given Consolidated Communications’ higher possible upside, analysts clearly believe Consolidated Communications is more favorable than magicJack VocalTec.

Insider and Institutional Ownership

68.9% of magicJack VocalTec shares are held by institutional investors. Comparatively, 71.3% of Consolidated Communications shares are held by institutional investors. 2.3% of magicJack VocalTec shares are held by insiders. Comparatively, 2.4% of Consolidated Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares magicJack VocalTec and Consolidated Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
magicJack VocalTec 6.99% 43.16% 12.26%
Consolidated Communications 3.47% -3.15% -0.45%

Summary

Consolidated Communications beats magicJack VocalTec on 9 of the 14 factors compared between the two stocks.

magicJack VocalTec Company Profile

magicJack VocalTec Ltd., together with its subsidiaries, operates as a cloud communications company in the United States. The company's products and services allow users to make and/or receive free telephone calls to and from where the customer has broadband access to the Internet. It provides magicJack devices, such as The magicJack, magicJack PLUS, New magicJack PLUS, magicJack GO, and magicJack EXPRESS, which are voice-over-Internet-Protocol (VoIP) devices that enables customers to receive free VoIP phone service for their home, enterprise, or while traveling. The company also offers magicJack APP, an application that allows users to make and receive telephone calls through their smart phones using their magicJack account, as well as access to servers for a fee on a monthly or annual basis; and magicJack Connect App that offers Wi-Fi app-to-app calling and messaging services, as well as unlimited calling plans for the United States subscribers. In addition, it provides other magicJack-related products; and wholesales telephone services to VoIP providers and telecommunication carriers. Further, the company offers hosted unified communication as a service, as well as sells related hardware and network equipment to blue chip corporate customers; and VoIP services to small to medium sized businesses. It distributes its products through retail outlets, as well as direct sales. magicJack VocalTec Ltd. was founded in 1989 and is headquartered in Netanya, Israel.

Consolidated Communications Company Profile

Consolidated Communications Holdings, Inc., through its subsidiaries, provides various integrated communications services to business and residential customers in the United States. It offers a range of communication services and products that include local and long-distance, high-speed broadband Internet access, video, voice over Internet protocol, private line, custom calling features, security, cloud, data center, managed and IT, and directory publishing services, as well as engages in equipment sales activities. The company also sells and supports telecommunications equipment, such as key, private branch exchange, IP-based telephone systems, and other hardware solutions, as well as offers support services to medium and large business customers. As of December 31, 2017, it had approximately 972 thousand voice connections, 784 thousand data connections, and 103 thousand video connections. The company serves customers in consumer, commercial, and carrier channels. Consolidated Communications Holdings, Inc. was founded in 1894 and is headquartered in Mattoon, Illinois.

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