Financial Analysis: TALKTALK TELECO/ADR (OTCMKTS:TKTCY) and Anterix (NASDAQ:ATEX)

TALKTALK TELECO/ADR (OTCMKTS:TKTCY) and Anterix (NASDAQ:ATEX) are both small-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares TALKTALK TELECO/ADR and Anterix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TALKTALK TELECO/ADR	$1.99 billion	0.78	$194.52 million	$0.34	20.00
Anterix	$5.61 million	95.63	-$9.13 million	($2.02)	-14.26

TALKTALK TELECO/ADR has higher revenue and earnings than Anterix. Anterix is trading at a lower price-to-earnings ratio than TALKTALK TELECO/ADR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TALKTALK TELECO/ADR and Anterix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TALKTALK TELECO/ADR	N/A	N/A	N/A
Anterix	-666.54%	-31.07%	-15.03%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TALKTALK TELECO/ADR and Anterix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TALKTALK TELECO/ADR	0	0	0	0	0.00
Anterix	0	0	2	1	3.33

Anterix has a consensus price target of $68.00, suggesting a potential upside of 136.11%. Given Anterix’s stronger consensus rating and higher probable upside, analysts clearly believe Anterix is more favorable than TALKTALK TELECO/ADR.

Risk and Volatility

TALKTALK TELECO/ADR has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Anterix has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

87.7% of Anterix shares are held by institutional investors. 45.6% of Anterix shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Anterix beats TALKTALK TELECO/ADR on 8 of the 15 factors compared between the two stocks.

About TALKTALK TELECO/ADR

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

About Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.