Rostelecom OJSC (ROSYY) and GTT Communications (GTT) Head to Head Review

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Rostelecom OJSC (OTCMKTS:ROSYY) and GTT Communications (NYSE:GTT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Volatility and Risk

Rostelecom OJSC has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, GTT Communications has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rostelecom OJSC and GTT Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rostelecom OJSC $5.24 billion 0.52 $234.21 million N/A N/A
GTT Communications $827.90 million 2.33 -$71.50 million $0.24 147.21

Rostelecom OJSC has higher revenue and earnings than GTT Communications.

Dividends

Rostelecom OJSC pays an annual dividend of $0.38 per share and has a dividend yield of 6.0%. GTT Communications does not pay a dividend.

Profitability

This table compares Rostelecom OJSC and GTT Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rostelecom OJSC 4.69% 5.90% 2.52%
GTT Communications -21.82% -45.46% -5.45%

Insider & Institutional Ownership

0.0% of Rostelecom OJSC shares are held by institutional investors. Comparatively, 75.9% of GTT Communications shares are held by institutional investors. 23.0% of GTT Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Rostelecom OJSC and GTT Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rostelecom OJSC 0 0 0 0 N/A
GTT Communications 1 1 7 0 2.67

GTT Communications has a consensus target price of $51.63, suggesting a potential upside of 46.12%. Given GTT Communications’ higher probable upside, analysts clearly believe GTT Communications is more favorable than Rostelecom OJSC.

Summary

Rostelecom OJSC beats GTT Communications on 7 of the 13 factors compared between the two stocks.

Rostelecom OJSC Company Profile

Public Joint Stock Company Long-Distance and International Telecommunications Rostelecom operates as a national telecommunications company in Russia and Europe. The company offers communication services, such as local, intra-zone, long-distance domestic and international fixed-line telephone, and mobile services, as well as data transmission, Internet, Pay TV, VPN, data center, and radio communication services; and rents communication channels. It operates the intercity network and the international telecommunications gateways of Russia, which carry voice and data traffic that originates in owned, and other national and international operators' networks to national and international operators for termination. The company also operates government programs, including e-Government, unified communication service, and others, as well as offers solutions in the fields of cloud computing, medicine, education, security, and housing and utility services. In addition, it manufactures communication equipment; and provides repair and maintenance, engineering design, recreational, and data storage services, as well as pension funds. The company serves approximately 12.7 million fixed-line broadband subscribers, 9.8 million pay-TV subscribers, and 4.8 million IPTV subscribers, including households, and corporate and government bodies. The company was founded in 1993 and is headquartered in Moscow, Russia.

GTT Communications Company Profile

GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers worldwide. The company provides private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless access services; managed equipment and security services; and voice and unified communications services consisting of SIP trunking and enterprise PBX services. It also offers video transport services for the transmission of live events, sport, entertainment, and news to broadcasters and cable programming providers; and network access services. The company's IP network consists of approximately 600 points of presence. GTT Communications, Inc. markets its products and services through a network of direct sales force and indirect sales channels. The company was formerly known as Global Telecom & Technology, Inc. and changed its name to GTT Communications, Inc. in January 2014. GTT Communications, Inc. was founded in 2005 and is headquartered in McLean, Virginia.

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