Head to Head Review: Altice USA (NYSE:ATUS) versus Spirent Communications (OTCMKTS:SPMYY)

Spirent Communications (OTCMKTS:SPMYY) and Altice USA (NYSE:ATUS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Spirent Communications and Altice USA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirent Communications	0	0	0	0	0.00
Altice USA	1	2	3	0	2.33

Altice USA has a consensus target price of $2.88, suggesting a potential upside of 10.28%. Given Altice USA’s stronger consensus rating and higher possible upside, analysts plainly believe Altice USA is more favorable than Spirent Communications.

Earnings and Valuation

This table compares Spirent Communications and Altice USA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirent Communications	$460.20 million	3.16	$12.90 million	N/A	N/A
Altice USA	$8.95 billion	0.14	-$102.92 million	($0.34)	-7.67

Spirent Communications has higher earnings, but lower revenue than Altice USA.

Profitability

This table compares Spirent Communications and Altice USA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirent Communications	N/A	N/A	N/A
Altice USA	-1.78%	N/A	-0.49%

Risk and Volatility

Spirent Communications has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Altice USA has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Insider and Institutional Ownership

54.9% of Altice USA shares are owned by institutional investors. 1.0% of Spirent Communications shares are owned by company insiders. Comparatively, 44.6% of Altice USA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Altice USA beats Spirent Communications on 7 of the 11 factors compared between the two stocks.

About Spirent Communications

Spirent Communications plc provides automated test and assurance solutions in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company operates through Lifecycle Service Assurance, and Networks & Security segments. The Lifecycle Service Assurance segment offers lab-based testing solutions for 5G mobile core networks, and cellular and Wi-Fi devices, as well as live solutions. This segment also provides lab and test automation solutions for the telecom industry and enterprises. The Networks & Security segment develops test methodologies, tools, and services for virtualised networks, cloud, and artificial intelligence networking infrastructure, as well as application performance and proactive security validation. This segment also offers Ethernet/internet protocol performance testing solutions, as well as navigation satellite system test and simulation solutions while addressing opportunities in the broader positioning, navigation, and timing market, including low earth orbit satellites and autonomous vehicles. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.

About Altice USA

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to residential and business customers. The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. In addition, it provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. Further, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Additionally, it provides hosted private branch exchange, network security, and international calling and toll-free numbers services. Furthermore, the company offers audience-based and multiscreen advertising solutions; data analytics; and news programming services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. Altice USA, Inc. was incorporated in 2015 and is headquartered in Long Island City, New York.