CenturyLink (NYSE: CTL) is one of 47 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its rivals? We will compare CenturyLink to similar companies based on the strength of its profitability, risk, earnings, valuation, dividends, analyst recommendations and institutional ownership.
Volatility and Risk
CenturyLink has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, CenturyLink’s rivals have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.
Valuation & Earnings
This table compares CenturyLink and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|CenturyLink||$16.97 billion||$6.06 billion||27.06|
|CenturyLink Competitors||$12.69 billion||$4.23 billion||1.21|
CenturyLink has higher revenue and earnings than its rivals. CenturyLink is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares CenturyLink and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for CenturyLink and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CenturyLink currently has a consensus target price of $25.55, suggesting a potential upside of 36.83%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 31.58%. Given CenturyLink’s higher possible upside, equities analysts clearly believe CenturyLink is more favorable than its rivals.
CenturyLink pays an annual dividend of $2.16 per share and has a dividend yield of 11.6%. CenturyLink pays out 313.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 5.0% and pay out 829.0% of their earnings in the form of a dividend. CenturyLink is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
83.0% of CenturyLink shares are held by institutional investors. Comparatively, 56.0% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.6% of CenturyLink shares are held by company insiders. Comparatively, 4.4% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
CenturyLink beats its rivals on 10 of the 15 factors compared.
CenturyLink, Inc. is an integrated communications company. The Company is engaged in providing an array of communications services to its residential and business customers. Its segments include business, which provides strategic, legacy and data integration products and services to small, medium and enterprise business, wholesale and governmental customers, including other communication providers, and consumer, which provides strategic and legacy products and services to residential customers. Its communications services include local and long-distance voice, broadband, Multi-Protocol Label Switching (MPLS), private line (including special access), Ethernet, colocation, hosting (including cloud hosting and managed hosting), data integration, video, network, public access, Voice over Internet Protocol (VoIP), information technology and other ancillary services. As of December 31, 2016, it served approximately 5.9 million broadband subscribers and 325,000 Prism TV subscribers.
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