Vonage Holdings Corp. (NYSE: VG) and Lumos Networks Corp. (NASDAQ:LMOS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Insider and Institutional Ownership
76.2% of Vonage Holdings Corp. shares are owned by institutional investors. Comparatively, 84.1% of Lumos Networks Corp. shares are owned by institutional investors. 14.1% of Vonage Holdings Corp. shares are owned by insiders. Comparatively, 8.7% of Lumos Networks Corp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Vonage Holdings Corp. has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500. Comparatively, Lumos Networks Corp. has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Vonage Holdings Corp. and Lumos Networks Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vonage Holdings Corp.||0||1||4||0||2.80|
|Lumos Networks Corp.||0||3||1||0||2.25|
Vonage Holdings Corp. currently has a consensus price target of $8.55, suggesting a potential upside of 4.78%. Lumos Networks Corp. has a consensus price target of $19.00, suggesting a potential upside of 6.32%. Given Lumos Networks Corp.’s higher probable upside, analysts clearly believe Lumos Networks Corp. is more favorable than Vonage Holdings Corp..
This table compares Vonage Holdings Corp. and Lumos Networks Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vonage Holdings Corp.||2.00%||12.40%||5.95%|
|Lumos Networks Corp.||-1.70%||-2.79%||-0.51%|
Earnings & Valuation
This table compares Vonage Holdings Corp. and Lumos Networks Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vonage Holdings Corp.||$990.31 million||1.87||$95.00 million||$0.08||102.01|
|Lumos Networks Corp.||$214.94 million||1.99||$85.48 million||N/A||N/A|
Vonage Holdings Corp. has higher revenue and earnings than Lumos Networks Corp..
Vonage Holdings Corp. beats Lumos Networks Corp. on 8 of the 12 factors compared between the two stocks.
About Vonage Holdings Corp.
Vonage Holdings Corp. is a provider of cloud communications services for businesses and consumers, and consumer and communication solutions across multiple devices. The Company operates through two segments: Business and Consumer. For business services customers, the Company provides cloud-based unified communications as a service (UCaaS) solutions, consisting of integrated voice, text, video, data, collaboration, and mobile applications over its scalable session initiation protocol (SIP) based voice over Internet protocol (VoIP) network. It serves a range of the business market, including the small and medium business (SMB), mid-market and enterprise segments. Through its cloud-based middleware solution, gUnify, the Company provides customers the ability to integrate its cloud communications platform with various cloud-based productivity and customer relationship management (CRM) solutions, including Google’s G Suite, Zendesk, Salesforce’s Sales Cloud, Oracle and Clio.
About Lumos Networks Corp.
Lumos Networks Corp. is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region with a network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company serves carrier, business and residential customers over its fiber network offering data, voice and Internet protocol (IP) services. The Company operates through three segments: Data, Residential and Small Business (R&SB), and RLEC Access. The Data segment includes the Company’s enterprise data, transport and Fiber to the Cell (FTTC) product groups. The R&SB segment includes voice and IP services products targeted to its residential and small business customers. The RLEC Access segment provides other carrier customers access to the Company’s network within the Company’s rural local exchange carrier (RLEC) territories through switched access services.
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