GTT Communications (NYSE:GTT) versus Its Rivals Head-To-Head Analysis

GTT Communications (NYSE: GTT) is one of 24 public companies in the “Cloud Computing Services” industry, but how does it contrast to its competitors? We will compare GTT Communications to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Volatility and Risk

GTT Communications has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, GTT Communications’ competitors have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.

Profitability

This table compares GTT Communications and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GTT Communications -1.88% 4.17% 0.61%
GTT Communications Competitors -57.42% -45.45% -16.60%

Institutional & Insider Ownership

58.9% of GTT Communications shares are held by institutional investors. Comparatively, 61.6% of shares of all “Cloud Computing Services” companies are held by institutional investors. 25.7% of GTT Communications shares are held by company insiders. Comparatively, 22.1% of shares of all “Cloud Computing Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares GTT Communications and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
GTT Communications $636.92 million $150.79 million -117.32
GTT Communications Competitors $933.33 million $18.40 million -81.67

GTT Communications’ competitors have higher revenue, but lower earnings than GTT Communications. GTT Communications is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for GTT Communications and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GTT Communications 0 0 4 0 3.00
GTT Communications Competitors 76 453 1484 41 2.73

GTT Communications currently has a consensus target price of $36.75, suggesting a potential upside of 11.87%. As a group, “Cloud Computing Services” companies have a potential upside of 1.60%. Given GTT Communications’ stronger consensus rating and higher probable upside, analysts clearly believe GTT Communications is more favorable than its competitors.

Summary

GTT Communications beats its competitors on 10 of the 13 factors compared.

About GTT Communications

GTT Communications, Inc. provides cloud networking services to a range of clients. The Company offers a portfolio of global communications services, wide area network (WAN) services; Internet services; managed network and security services, and voice and unified communication services. It provides Layer 2 (Ethernet) and Layer 3 (multiprotocol label switching (MPLS)) WAN solutions for multinational clients. It offers customers with high-bandwidth global Internet connectivity and Internet protocol (IP) transit with availability and packet delivery. The Company offers managed network services, including managed equipment, managed security services and managed remote access. Its Session Initiation Protocol (SIP) Trunking service is an enterprise-built unified communications offering that integrates voice, video and chat onto a single IP connection. As of December 31, 2016, it had provided services to multinational enterprises, carriers and government customers in over 100 countries.

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