Fusion Telecommunications International (NASDAQ: FSNN) and Alaska Communications Systems Group (NASDAQ:ALSK) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Profitability
This table compares Fusion Telecommunications International and Alaska Communications Systems Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fusion Telecommunications International | -10.96% | -164.53% | -11.83% |
| Alaska Communications Systems Group | -0.65% | -0.01% | N/A |
Risk and Volatility
Fusion Telecommunications International has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, Alaska Communications Systems Group has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500.
Institutional and Insider Ownership
18.8% of Fusion Telecommunications International shares are owned by institutional investors. Comparatively, 39.7% of Alaska Communications Systems Group shares are owned by institutional investors. 19.1% of Fusion Telecommunications International shares are owned by company insiders. Comparatively, 6.5% of Alaska Communications Systems Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Fusion Telecommunications International and Alaska Communications Systems Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Fusion Telecommunications International | $124.06 million | 0.24 | $6.03 million | ($0.92) | -1.43 |
| Alaska Communications Systems Group | $229.54 million | 0.50 | $56.67 million | ($0.02) | -108.95 |
Alaska Communications Systems Group has higher revenue and earnings than Fusion Telecommunications International. Alaska Communications Systems Group is trading at a lower price-to-earnings ratio than Fusion Telecommunications International, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Fusion Telecommunications International and Alaska Communications Systems Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fusion Telecommunications International | 0 | 0 | 2 | 0 | 3.00 |
| Alaska Communications Systems Group | 0 | 0 | 1 | 0 | 3.00 |
Fusion Telecommunications International currently has a consensus price target of $3.00, suggesting a potential upside of 127.27%. Alaska Communications Systems Group has a consensus price target of $3.00, suggesting a potential upside of 37.61%. Given Fusion Telecommunications International’s higher possible upside, equities analysts plainly believe Fusion Telecommunications International is more favorable than Alaska Communications Systems Group.
Summary
Alaska Communications Systems Group beats Fusion Telecommunications International on 8 of the 12 factors compared between the two stocks.
Fusion Telecommunications International Company Profile
Fusion Telecommunications International, Inc. is a United States-based provider of integrated cloud solutions, including cloud voice, cloud connectivity, cloud infrastructure, cloud computing, and managed cloud-based applications to businesses, and voice over Internet Protocol (VoIP)-based voice services to carriers. The Company operates through two segments: Business Services and Carrier Services. Through Business Services segment, it provides cloud voice, cloud connectivity, cloud infrastructure, cloud computing and managed cloud-based applications to businesses of all sizes. Its suite of business services includes unified communications as a service, session initiation protocol trunking solution and file sharing solution. The Carrier Services segment includes termination of domestic and international carrier traffic utilizing VoIP technology. It offers solutions to small, medium and large businesses. It offers domestic and international VoIP services to carriers around the world.
Alaska Communications Systems Group Company Profile
Alaska Communications Systems Group, Inc. is a fiber broadband and managed information technology (IT) services provider. The Company is focused primarily on business and wholesale customers in and out of Alaska. The Company also provides telecommunication services to consumers across Alaska. The Company’s facilities-based communications network extends across Alaska and connects to the contiguous states through its undersea fiber optic cable systems and its usage rights on an undersea system. It serves customers in various areas, such as Business and Wholesale (broadband, voice and managed IT services); Consumer (broadband and voice services), and Other Services (including carrier termination, equipment sales, access services and support services receiving federal support funding). It provides voice and broadband services to residential customers. It provides voice and broadband origination and termination services to inter and intrastate carriers serving its retail customers.
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