Critical Analysis: Altice USA (NYSE:ATUS) vs. Corning (NYSE:GLW)

Altice USA (NYSE:ATUS) and Corning (NYSE:GLW) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

Altice USA has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Corning has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Altice USA	-3.07%	N/A	-0.85%
Corning	5.77%	17.27%	6.96%

Valuation & Earnings

This table compares Altice USA and Corning”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altice USA	$8.95 billion	0.12	-$102.92 million	($0.58)	-3.97
Corning	$13.12 billion	4.29	$506.00 million	$0.94	69.94

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

Insider and Institutional Ownership

54.9% of Altice USA shares are owned by institutional investors. Comparatively, 69.8% of Corning shares are owned by institutional investors. 44.6% of Altice USA shares are owned by company insiders. Comparatively, 0.4% of Corning shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Altice USA and Corning, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altice USA	1	1	3	0	2.40
Corning	0	3	10	1	2.86

Altice USA presently has a consensus target price of $3.05, suggesting a potential upside of 32.32%. Corning has a consensus target price of $65.1667, suggesting a potential downside of 0.87%. Given Altice USA’s higher possible upside, equities analysts clearly believe Altice USA is more favorable than Corning.

Summary

Corning beats Altice USA on 12 of the 15 factors compared between the two stocks.

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.

About Corning

Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. The company's Display Technologies segment offers glass substrates for flat panel displays, including liquid crystal displays and organic light-emitting diodes that are used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, such as cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories for the telecommunications industry, businesses, governments, and individuals. The company's Specialty Materials segment manufactures products that offer material formulations for glass, glass ceramics, crystals, precision metrology instruments, and software, as well as glass wafers and substrates, tinted sunglasses, and radiation shielding products for various markets comprising mobile consumer electronics, semiconductor equipment optics and consumables, aerospace and defense optics, radiation shielding products, sunglasses, and telecommunications components. Its Environmental Technologies segment provides ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products, including consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware, and glassware and equipment under the Corning, Pyrex, Falcon, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.