Critical Review: Spok (SPOK) & The Competition

Spok (NASDAQ:SPOKGet Rating) is one of 27 publicly-traded companies in the “Radiotelephone communication” industry, but how does it weigh in compared to its peers? We will compare Spok to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Dividends

Spok pays an annual dividend of $1.25 per share and has a dividend yield of 17.6%. Spok pays out -89.3% of its earnings in the form of a dividend. As a group, “Radiotelephone communication” companies pay a dividend yield of 4.9% and pay out 82.5% of their earnings in the form of a dividend. Spok has increased its dividend for 1 consecutive years. Spok is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

58.7% of Spok shares are held by institutional investors. Comparatively, 24.4% of shares of all “Radiotelephone communication” companies are held by institutional investors. 7.8% of Spok shares are held by company insiders. Comparatively, 1.6% of shares of all “Radiotelephone communication” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Spok and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spok -19.36% -4.38% -3.09%
Spok Competitors -39.07% 28.44% -4.78%

Analyst Recommendations

This is a summary of current ratings and target prices for Spok and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spok 0 0 0 0 N/A
Spok Competitors 283 823 1195 52 2.43

As a group, “Radiotelephone communication” companies have a potential upside of 71.08%. Given Spok’s peers higher possible upside, analysts plainly believe Spok has less favorable growth aspects than its peers.

Risk and Volatility

Spok has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Spok’s peers have a beta of 5.86, indicating that their average share price is 486% more volatile than the S&P 500.

Valuation and Earnings

This table compares Spok and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Spok $142.15 million -$22.18 million -5.09
Spok Competitors $17.74 billion $958.63 million 10.59

Spok’s peers have higher revenue and earnings than Spok. Spok is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Spok beats its peers on 6 of the 11 factors compared.

Spok Company Profile (Get Rating)

Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides healthcare communication solutions in the United States, Europe, Canada, Australia, Asia, and the Middle East. It delivers clinical information to care teams when and where it matters to enhance patient outcomes. The company offers subscriptions to one-way or two-way messaging services; and ancillary services, such as voicemail, and equipment loss or maintenance protection services, as well as sells devices to resellers who lease or resell them to their subscribers. Its Spok Care Connect platform enhance workflows for clinicians and support administrative compliance. In addition, the company provides professional, software license updates, and product support services, as well as sells third-party equipment. It serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. The company was founded in 1986 and is headquartered in Alexandria, Virginia.

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