Reviewing Liberty Latin America (NASDAQ:LILA) and Nuvera Communications (OTCMKTS:NUVR)

Liberty Latin America (NASDAQ:LILA) and Nuvera Communications (OTCMKTS:NUVR) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Liberty Latin America and Nuvera Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Liberty Latin America	1	2	0	1	2.25
Nuvera Communications	0	0	0	0	0.00

Liberty Latin America presently has a consensus target price of $6.50, suggesting a potential upside of 13.84%. Given Liberty Latin America’s stronger consensus rating and higher probable upside, research analysts clearly believe Liberty Latin America is more favorable than Nuvera Communications.

Insider & Institutional Ownership

18.5% of Liberty Latin America shares are held by institutional investors. Comparatively, 13.4% of Nuvera Communications shares are held by institutional investors. 12.0% of Liberty Latin America shares are held by company insiders. Comparatively, 13.8% of Nuvera Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Liberty Latin America and Nuvera Communications”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Liberty Latin America	$4.46 billion	0.26	-$657.00 million	($4.03)	-1.42
Nuvera Communications	$69.24 million	0.83	-$4.43 million	($0.77)	-14.29

Nuvera Communications has lower revenue, but higher earnings than Liberty Latin America. Nuvera Communications is trading at a lower price-to-earnings ratio than Liberty Latin America, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Liberty Latin America and Nuvera Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Liberty Latin America	-17.85%	-44.60%	-6.19%
Nuvera Communications	-5.89%	0.87%	0.31%

Risk & Volatility

Liberty Latin America has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Nuvera Communications has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

About Liberty Latin America

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.

About Nuvera Communications

Nuvera Communications, Inc. operates as a diversified communications company in the United States. The company offers broadband Internet access and voice over Internet protocol (VoIP) phone services; voice services to make and receive telephone calls within a defined local calling area; and network access services to other communication carriers for the use of its facilities to terminate or originate long distance calls on its fiber network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; data services for business and residential customers; email and managed services comprising web hosting and design, online file back up, and online file storage; directory assistance, operator service, and long-distance private lines; directory publishing, bill processing, and other customer services; and fiber-delivered communications and managed information technology solutions, as well as sells and services customer premise equipment. In addition, the company is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systems. The company serves communities in Minnesota and Iowa through customer service call centers, its website, and commissioned sales representatives. The company was formerly known as New Ulm Telecom, Inc. and changed its name to Nuvera Communications, Inc. in June 2018. Nuvera Communications, Inc. was incorporated in 1905 and is headquartered in New Ulm, Minnesota.