Critical Review: New Ulm Telecom (NULM) vs. Internet Gold Golden Lines (IGLD)

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New Ulm Telecom (OTCMKTS:NULM) and Internet Gold Golden Lines (NASDAQ:IGLD) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for New Ulm Telecom and Internet Gold Golden Lines, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Ulm Telecom 0 0 0 0 N/A
Internet Gold Golden Lines 0 0 0 0 N/A

Dividends

New Ulm Telecom pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Internet Gold Golden Lines does not pay a dividend.

Insider & Institutional Ownership

4.0% of Internet Gold Golden Lines shares are held by institutional investors. 6.8% of New Ulm Telecom shares are held by company insiders. Comparatively, 1.0% of Internet Gold Golden Lines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

New Ulm Telecom has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, Internet Gold Golden Lines has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Valuation & Earnings

This table compares New Ulm Telecom and Internet Gold Golden Lines’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Ulm Telecom $46.89 million 1.97 $9.95 million N/A N/A
Internet Gold Golden Lines $2.82 billion 0.02 -$4.00 million N/A N/A

New Ulm Telecom has higher earnings, but lower revenue than Internet Gold Golden Lines.

Profitability

This table compares New Ulm Telecom and Internet Gold Golden Lines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Ulm Telecom 21.98% 15.66% 9.18%
Internet Gold Golden Lines -2.37% -9.39% -1.06%

Summary

New Ulm Telecom beats Internet Gold Golden Lines on 7 of the 10 factors compared between the two stocks.

New Ulm Telecom Company Profile

New Ulm Telecom, Inc., a diversified communications company, engages in local telephone exchange and telecommunications businesses. It offers local services that enable end-user customers to make and receive telephone calls within a defined local calling area; and access services to other telecommunications carriers for the use of its facilities to terminate or originate long distance calls on its network. The company also provides video services; high speed Internet to business and residential customers; email and managed services, such as Web hosting and design, online file back up, and online file storage; toll and long-distance services, including directory assistance, operator service, and long distance private lines; and directory publishing, bill processing, and other customer services, as well as sales and services customer premise equipment. In addition, it is involved in the retail sale and service of cellular phones and accessories under the TechTrends Wireless brand name through Telespire, a wireless provider. As of December 31, 2017, the company served 21,954 access lines in the Minnesota communities of Bellechester, Courtland, Evan, Goodhue, Hanska, Hutchinson, Klossner, Litchfield, Mazeppa, New Ulm, Redwood Falls, Sanborn, Searles, Sleepy Eye, Springfield, and White Rock, as well as in the rural areas of Blue Earth, Brown, Goodhue, McLeod, Meeker, Nicollet, Redwood, and Wabasha counties in south central Minnesota; and the community of Aurelia, Iowa, as well as rural areas surrounding Aurelia. It also operates multiple Internet protocol television (IPTV) and cable television services systems in Minnesota comprising the cities of Cologne, Courtland, Glencoe, Goodhue, Hanska, Hutchinson, Litchfield, Mayer, New Germany, New Ulm, Plato, Redwood Falls, Sanborn, Sleepy Eye, and Springfield; and 1 IPTV system in Aurelia, Iowa serving approximately 10,346 customers. New Ulm Telecom, Inc. was founded in 1905 and is headquartered in New Ulm, Minnesota.

Internet Gold Golden Lines Company Profile

Internet Gold – Golden Lines Ltd. provides various telecommunications services in Israel. The company offers domestic fixed-line, cellular, and international communication services; Internet services; and multi-channel television, television and radio broadcasting, satellite broadcasting, and customer call center services. It also engages in the development and maintenance of communication infrastructure, as well as provision of communication services to other communications providers; online shopping and classified ads; and engages in the supply and maintenance of equipment on customer premises. The company was founded in 1980 and is headquartered in Ramat Gan, Israel. Internet Gold – Golden Lines Ltd. is a subsidiary of Eurocom Communications Ltd.

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