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

Consolidated Communications (NASDAQ:CNSLGet Rating) and Frontier Communications (OTCMKTS:FTRCQGet Rating) are both small-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Consolidated Communications -12.77% 8.17% 0.92%
Frontier Communications 80.23% 110.77% 31.13%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Communications 0 2 0 0 2.00
Frontier Communications 0 0 0 0 N/A

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Consolidated Communications $1.28 billion 0.60 -$107.08 million ($1.76) -3.77
Frontier Communications $6.41 billion 0.00 $4.96 billion ($1.50) -0.04

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

Insider & Institutional Ownership

93.9% of Consolidated Communications shares are owned by institutional investors. 1.5% of Consolidated Communications shares are owned by company insiders. Comparatively, 1.7% of Frontier Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

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

About Consolidated Communications (Get Rating)

Consolidated Communications Holdings, Inc., together with its subsidiaries, provides broadband and business communication solutions for consumer, commercial, and carrier channels in the United States. It offers high-speed broadband Internet access and voice over Internet protocol (VoIP) phone 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 center and disaster recovery solutions; and wholesale services to regional and national interexchange, and wireless carriers comprising cellular backhaul and other fiber transport solutions. The company also provides voice services, such as local phone and long-distance services; and sells business equipment, as well as offers related hardware and maintenance support, video, and other miscellaneous services. In addition, it offers video services, which consist of high-definition television, digital video recorders (DVR), and/or a whole home DVR; and on-demand streaming TV services that provide endless entertainment options. Further, the company provides network access services that include interstate and intrastate switched access, network special 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 Rating)

Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers 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 and traditional circuit-based services; software defined wide area network, managed Wi-Fi and cloud IT solutions, voice and Unified Communications as a Service (UCaaS), and Voice over Internet Protocol (VoIP) services, as well as hardware and network solutions and services to small and medium business, and large enterprises. In addition, it offers data and Internet services; wireless broadband services; satellite TV video services; voice services, including data-based VoIP, UCaaS, and long distance and voice messaging services; and a package of communications services. Further, the company provides a range of access services that allow other carriers 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, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

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