Head-To-Head Review: Hawaiian Telcom (HCOM) vs. SBA Communications (SBAC)

Hawaiian Telcom (NASDAQ: HCOM) and SBA Communications (NASDAQ:SBAC) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Analyst Recommendations

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This is a summary of current ratings and price targets for Hawaiian Telcom and SBA Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawaiian Telcom 0 1 0 0 2.00
SBA Communications 0 4 11 0 2.73

SBA Communications has a consensus price target of $173.62, indicating a potential upside of 4.78%. Given SBA Communications’ stronger consensus rating and higher possible upside, analysts clearly believe SBA Communications is more favorable than Hawaiian Telcom.

Risk and Volatility

Hawaiian Telcom has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, SBA Communications has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Profitability

This table compares Hawaiian Telcom and SBA Communications’ 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%
SBA Communications 6.00% -5.43% 1.63%

Institutional and Insider Ownership

68.5% of Hawaiian Telcom shares are owned by institutional investors. Comparatively, 93.0% of SBA Communications shares are owned by institutional investors. 26.0% of Hawaiian Telcom shares are owned by insiders. Comparatively, 2.7% of SBA Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Hawaiian Telcom and SBA Communications’ top-line 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
SBA Communications $1.73 billion 11.17 $103.65 million $0.99 167.36

SBA Communications has higher revenue and earnings than Hawaiian Telcom.

Summary

SBA Communications beats Hawaiian Telcom on 10 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 SBA Communications

SBA Communications Corporation is a first choice provider and leading owner and operator of wireless communications infrastructure in North, Central, and South America. By ?Building Better Wireless,? SBA generates revenue from two primary businesses ? site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant communication sites to a variety of wireless service providers under long-term lease contracts. For more information please visit: www.sbasite.com.

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