Hawaiian Telcom (NASDAQ:HCOM) versus Remark (MARK) Financial Analysis

Hawaiian Telcom (NASDAQ: HCOM) and Remark (NASDAQ:MARK) are both small-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

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68.5% of Hawaiian Telcom shares are held by institutional investors. Comparatively, 13.6% of Remark shares are held by institutional investors. 26.0% of Hawaiian Telcom shares are held by insiders. Comparatively, 32.5% of Remark 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.

Earnings and Valuation

This table compares Hawaiian Telcom and Remark’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawaiian Telcom $368.42 million 0.87 -$107.24 million N/A N/A
Remark $70.60 million 3.19 -$106.73 million ($1.79) -3.83

Remark has lower revenue, but higher earnings than Hawaiian Telcom.

Volatility and Risk

Hawaiian Telcom has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Remark has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hawaiian Telcom and Remark, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian Telcom 0 1 0 0 2.00
Remark 0 0 1 0 3.00

Remark has a consensus target price of $20.50, suggesting a potential upside of 199.27%. Given Remark’s stronger consensus rating and higher probable upside, analysts clearly believe Remark is more favorable than Hawaiian Telcom.

Profitability

This table compares Hawaiian Telcom and Remark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawaiian Telcom -29.11% -6.64% -2.31%
Remark -151.24% N/A -34.67%

Summary

Remark beats Hawaiian Telcom on 8 of the 12 factors compared between the two stocks.

About Hawaiian Telcom

Hawaiian Telcom Holdco, Inc. provides communications services and products to residential and business customers in the islands of Oahu, Maui, Hawaii, Kauai, Molokai, and Lanai. The company offers local telephone services, including voice and data transport, custom calling features, network access, directory assistance, and private lines. It also provides high-speed Internet, long distance, television, Internet protocol based network, managed, billing and collection, and wireless services; data center services, including colocation and virtual private cloud; customer premises equipment; and data solutions. As of December 31, 2017, the company served approximately 271,000 voice access lines; 22,000 business voice over Internet protocol lines; 110,000 high-speed Internet lines; and 45,000 video subscribers. Hawaiian Telcom Holdco, Inc. was founded in 1883 and is headquartered in Honolulu, Hawaii.

About Remark

Remark Holdings, Inc., formerly Remark Media, Inc., owns, operates and acquires digital media properties across multiple verticals. The Company operates through the travel and entertainment segment. The travel and entertainment segment includes the Vegas.com and its Roomlia mobile application. The Company is engaged in the sale of various travel and entertainment products, including air travel, show tickets and tours, which are booked through its travel and entertainment segment, consisting of Vegas.com and its related Websites, including LasVegas.com, mobile applications and retail locations. KanKan, its social media application and data intelligence platform, aggregates content and consumer-shopping data across social media platforms and then stores it after scrubbing, analyzing, and organizing the collected information. For users, the application allows them to explore the world around them, communicate with friends, make friends, and respond to each other’s social media posts.

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