Shenandoah Telecommunications (NASDAQ:SHEN – Get Free Report) and Telenor ASA (OTCMKTS:TELNF – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Dividends
Shenandoah Telecommunications pays an annual dividend of $0.11 per share and has a dividend yield of 0.9%. Telenor ASA pays an annual dividend of $7.00 per share and has a dividend yield of 49.5%. Shenandoah Telecommunications pays out -14.1% of its earnings in the form of a dividend. Telenor ASA pays out 159.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shenandoah Telecommunications has raised its dividend for 3 consecutive years.
Insider and Institutional Ownership
62.0% of Shenandoah Telecommunications shares are held by institutional investors. Comparatively, 17.3% of Telenor ASA shares are held by institutional investors. 5.0% of Shenandoah Telecommunications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shenandoah Telecommunications | $367.00 million | 1.86 | -$39.39 million | ($0.78) | -15.81 |
| Telenor ASA | N/A | N/A | N/A | $4.39 | 3.22 |
Telenor ASA has lower revenue, but higher earnings than Shenandoah Telecommunications. Shenandoah Telecommunications is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Shenandoah Telecommunications and Telenor ASA, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shenandoah Telecommunications | 1 | 0 | 2 | 0 | 2.33 |
| Telenor ASA | 0 | 0 | 0 | 0 | 0.00 |
Shenandoah Telecommunications presently has a consensus target price of $27.50, suggesting a potential upside of 123.03%. Given Shenandoah Telecommunications’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Shenandoah Telecommunications is more favorable than Telenor ASA.
Profitability
This table compares Shenandoah Telecommunications and Telenor ASA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shenandoah Telecommunications | -10.83% | -4.54% | -2.07% |
| Telenor ASA | N/A | N/A | N/A |
Summary
Shenandoah Telecommunications beats Telenor ASA on 8 of the 14 factors compared between the two stocks.
About Shenandoah Telecommunications
Shenandoah Telecommunications Company, together with its subsidiaries, provides a range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States. It operates in two segments, Broadband and Tower. The company Broadband segment offers broadband, video, and voice services to residential and commercial customers in Virginia, West Virginia, Maryland, Pennsylvania, and Kentucky through hybrid fiber coaxial cable under the Shentel brand; and fiber optic services under the Glo Fiber brand name. This segment also leases dark fiber and provides Ethernet and wavelength fiber optic services to enterprise and wholesale customers under the Glo Fiber Enterprise and Glo Fiber Wholesale brand names; and provides voice data and DSL telephone services. The Tower segment owns macro cellular towers and leases colocation space to the wireless communications providers. Shenandoah Telecommunications Company was founded in 1902 and is based in Edinburg, Virginia.
About Telenor ASA
Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.
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