Analyzing BCE (NYSE:BCE) & Spectrum Global Solutions (NYSE:SGSI)

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BCE (NYSE:BCE) and Spectrum Global Solutions (OTCMKTS:SGSI) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Profitability

This table compares BCE and Spectrum Global Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BCE 12.84% 18.89% 5.31%
Spectrum Global Solutions -4.51% -0.60% -10.97%

Analyst Recommendations

This is a summary of current ratings for BCE and Spectrum Global Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BCE 1 5 5 0 2.36
Spectrum Global Solutions 0 0 0 0 N/A

BCE presently has a consensus target price of $58.56, suggesting a potential upside of 55.38%. Given BCE’s higher probable upside, equities research analysts clearly believe BCE is more favorable than Spectrum Global Solutions.

Earnings and Valuation

This table compares BCE and Spectrum Global Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BCE $18.06 billion 1.89 $2.40 billion $2.64 14.28
Spectrum Global Solutions $34.55 million 0.03 -$1.29 million N/A N/A

BCE has higher revenue and earnings than Spectrum Global Solutions.

Risk and Volatility

BCE has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Spectrum Global Solutions has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Insider and Institutional Ownership

44.7% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by company insiders. Comparatively, 32.4% of Spectrum Global Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

BCE beats Spectrum Global Solutions on 10 of the 11 factors compared between the two stocks.

About BCE

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates in three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communications products and services, including 40 live and on-demand channels on smartphones and tablets; roaming services; push-to-talk, field service management, worker safety, and mobility management solutions; and asset management, smart buildings, smart cities, fleet management, and other Internet of Things services. It also provides various 4G LTE and LTE-A smartphones and tablets, mobile Internet hubs and sticks, and mobile Wi-Fi devices, as well as smartwatches, Bell connected cars, trackers, smart homes, lifestyle products, and virtual reality products. The Bell Wireline segment provides data, including Internet access and Internet protocol television; and local telephone, long distance, and other communications services and products. It also provides home security, monitoring, and automation services; and satellite TV and connectivity services. In addition, this segment offers local exchange carrier and telecommunications services; sells wireline-related products; and buys and sells local telephone, long distance, data, and other services from or to resellers, and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, and streaming services; and digital media, radio broadcasting, out-of-home advertising services, sports and other event production, and broadcasting services. It owns and operates approximately 30 conventional TV stations; 33 specialty and Pay TV channels; 3 direct-to-consumer streaming services; 109 licensed radio stations; and 200 Websites and approximately 30 apps. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

About Spectrum Global Solutions

Spectrum Global Solutions, Inc. provides services and infrastructure solutions to the telecommunications industry, utility entities, and enterprises sectors primarily in Canada, the United States, Puerto Rico, Guam, and the Caribbean. The company's engineering, design, construction, installation, and maintenance services support the build-out, maintenance, upgrade, and operation of fiber optic, Ethernet, copper, wireless, wireline, utility, and enterprise networks. It also offers an array of operations, construction, project, and program management professional required to facilitate the networks from the design and planning phase, engineer evaluation and sign off, regulatory, installation, commissioning, and maintain various types of Wi-Fi and wide-area networks, distributed antenna system networks, and small cell distribution networks for incumbent local exchange carriers, telecommunications, original equipment manufacturers (OEMs), cable broadband multiple system operators, and enterprise customers. In addition, the company designs, installs, and maintains hardware solutions for OEMs that support voice, data, and optical networks. Further, it offers consulting and professional solutions to the service-provider and enterprise market, including project management, network implementation, network installation, network upgrades, rebuilds, maintenance, and consulting services. Additionally, the company provides network systems design, site acquisition services, asset audits, architectural and engineering services, program management, construction management and inspection, installation, maintenance, and other technical services, as well as in-field design, computer aided design and drawing services, fiber, and distributed antenna system deployments. The company was formerly known as Mantra Venture Group Ltd. and changed its name to Spectrum Global Solutions, Inc. in December 2017. Spectrum Global Solutions, Inc. was founded in 2007 and is based in Longwood, Florida.

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