Consolidated Communications (NASDAQ:CNSL) & Frontier Communications (OTCMKTS:FTRCQ) Head-to-Head Review


Consolidated Communications (NASDAQ:CNSL – Get Rating) and Frontier Communications (OTCMKTS:FTRCQ – Get Rating) are both small cap utilities, but which is the better company? We’ll compare the two companies based on valuation strength, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares the net margins, return on equity and return on assets of Consolidated Communications and Frontier Communications.

Net margins Return on equity return on assets
Consolidated Communications -12.77% 8.17% 0.92%
Border Communications 80.23% 110.77% 31.13%

Analyst Notes

This is a breakdown of recent ratings and target prices for Consolidated Communications and Frontier Communications, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Consolidated Communications 0 2 0 0 2.00
Border Communications 0 0 0 0 N / A

Consolidated Communications currently has a consensus price target of $5.50, which suggests a potential downside of 17.17%. Given Consolidated Communications’ likely higher upside, analysts clearly believe Consolidated Communications is more favorable than Frontier Communications.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Consolidated Communications and Frontier Communications.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Consolidated Communications $1.28 billion 0.60 -$107.08 million ($1.76) -3.77
Border Communications $6.41 billion 0.00 $4.96 billion ($1.50) -0.04

Frontier Communications has higher revenues and profits than Consolidated Communications. Consolidated Communications trades at a lower price-to-earnings ratio than Frontier Communications, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

93.9% of Consolidated Communications shares are held by institutional investors. 1.5% of Consolidated Communications shares are held by insiders of the company. By comparison, 1.7% of Frontier Communications’ stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.

Summary

Frontier Communications beats Consolidated Communications on 8 out of 11 factors compared between the two stocks.

About Consolidated Communications (Get a rating)

Consolidated Communications Holdings, Inc., together with its subsidiaries, provides broadband and enterprise communications solutions for consumer, commercial and carrier channels in the United States. It offers high-speed broadband Internet access and Voice over Internet Protocol (VoIP) telephone services; commercial data connectivity services in various markets, including Ethernet services, private line data services, software-defined wide area network and multi-protocol label switching services; networking services; cloud-based services; data centers and disaster recovery solutions; and wholesale services to regional and national interconnects, and wireless carriers including cellular backhaul and other fiber transport solutions. The company also provides voice services, such as local and long distance telephone services; and sells professional equipment, as well as offers related hardware and maintenance, video and other miscellaneous services. Additionally, it offers video services, which consist of high-definition television, digital video recorders (DVRs), and/or a whole-home DVR; and on-demand TV streaming services that offer endless entertainment options. In addition, the Company provides network access services which include interstate and intrastate dial-up access, special network access and end-user access; and telephone directory publishing, video advertising, billing and support, and other miscellaneous services. Consolidated Communications Holdings, Inc. was founded in 1894 and is headquartered in Mattoon, Illinois.

About Frontier Communications (Get a rating)

Frontier Communications Corporation provides communication services to consumers, businesses and wholesalers in the United States. It offers broadband, video, voice and other services and products through a combination of fiber and copper-based networks to consumer customers. The company also provides Ethernet services and traditional circuit-based services; software-defined wide area networking, managed Wi-Fi and cloud computing solutions, voice and unified communications services as a service (UCaaS) and voice over Internet protocol (VoIP), as well as hardware and network solutions and services for small and medium businesses companies, and large companies. In addition, it offers data and Internet services; wireless broadband services; satellite television video services; voice services, including data-based VoIP, UCaaS, long distance and voicemail services; and a set of communication services. In addition, the company provides a range of access services that allow other operators to use facilities to originate and terminate their local and long distance voice traffic. It serves approximately 3.6 million customers and 3.1 million broadband subscribers in 25 states. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was incorporated in 1935 and is based in Norwalk, Connecticut. On April 14, 2020, Frontier Communications Corporation, together with its affiliates, filed a voluntary Chapter 11 reorganization petition with the United States Bankruptcy Court for the Southern District of New York.



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