Critical Analysis: GTT Communications (OTCMKTS:GTTN) and Nuvera Communications (OTCMKTS:NUVR)

GTT Communications (OTCMKTS:GTTNGet Rating) and Nuvera Communications (OTCMKTS:NUVRGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Volatility and Risk

GTT Communications has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Nuvera Communications has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Institutional and Insider Ownership

45.6% of GTT Communications shares are owned by institutional investors. 46.4% of GTT Communications shares are owned by company insiders. Comparatively, 8.3% of Nuvera Communications shares are owned 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 GTT Communications and Nuvera Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GTT Communications N/A N/A N/A
Nuvera Communications 14.39% 9.75% 5.50%

Analyst Recommendations

This is a breakdown of current ratings and price targets for GTT Communications and Nuvera Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GTT Communications 0 0 0 0 N/A
Nuvera Communications 0 0 0 0 N/A

Valuation and Earnings

This table compares GTT Communications and Nuvera Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GTT Communications $1.73 billion 0.00 -$105.90 million N/A N/A
Nuvera Communications $65.84 million 1.47 $12.25 million N/A N/A

Nuvera Communications has lower revenue, but higher earnings than GTT Communications.

Summary

Nuvera Communications beats GTT Communications on 5 of the 9 factors compared between the two stocks.

GTT Communications Company Profile (Get Rating)

GTT Communications, Inc. engages in the provision of cloud networking services to multinational clients. It offers broad portfolio of global services including private networking; Internet; optical transport; Software Defined Wide Area Networking; managed services; voice and unified communications; video transport; and access services. The company was founded by H. Brian Thompson on January 3, 2005 and is headquartered in McLean, VA.

Nuvera Communications Company Profile (Get Rating)

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; and 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 network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; high-speed Internet to business and residential customers; e-mail 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, it is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systemsAs of December 31, 2021, the company served 32,520 broadband connections and 17,216 access lines in the Minnesota communities of Bellechester, Courtland, Elko, Evan, Goodhue, Hanska, Hutchinson, Klossner, Litchfield, Mazeppa, New Market, New Ulm, Prior Lake, Redwood Falls, Sanborn, Savage, Searles, Sleepy Eye, Springfield, and White Rock, as well as the adjacent rural areas of Blue Earth, Brown, Goodhue, McLeod, Meeker, Nicollet, Redwood, Rice, Scott and Wabasha counties in south-central Minnesota. It also serves the community of Aurelia, Iowa as well as the adjacent rural areas surrounding Aurelia. 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.

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