Hawaiian Telcom HoldCo (NASDAQ: HCOM) and RigNet (NASDAQ:RNET) are both small-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Risk and Volatility
Hawaiian Telcom HoldCo has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, RigNet has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Insider and Institutional Ownership
70.5% of Hawaiian Telcom HoldCo shares are owned by institutional investors. Comparatively, 86.7% of RigNet shares are owned by institutional investors. 26.0% of Hawaiian Telcom HoldCo shares are owned by company insiders. Comparatively, 2.3% of RigNet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Hawaiian Telcom HoldCo and RigNet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hawaiian Telcom HoldCo||-30.57%||-8.86%||-2.87%|
This is a breakdown of recent ratings and target prices for Hawaiian Telcom HoldCo and RigNet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hawaiian Telcom HoldCo||0||1||0||0||2.00|
RigNet has a consensus target price of $17.50, indicating a potential upside of 59.82%. Given RigNet’s stronger consensus rating and higher possible upside, analysts plainly believe RigNet is more favorable than Hawaiian Telcom HoldCo.
Earnings & Valuation
This table compares Hawaiian Telcom HoldCo and RigNet’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hawaiian Telcom HoldCo||$368.42 million||0.90||-$107.24 million||N/A||N/A|
|RigNet||$204.89 million||1.03||-$16.17 million||($0.71)||-15.42|
RigNet has lower revenue, but higher earnings than Hawaiian Telcom HoldCo.
RigNet beats Hawaiian Telcom HoldCo on 7 of the 12 factors compared between the two stocks.
About Hawaiian Telcom HoldCo
Hawaiian Telcom Holdco, Inc. provides communications services and products to residential and business customers in the islands of Oahu, Maui, Hawaii, Kauai, Molokai, and Lanai. The company offers local telephone services, including voice and data transport, custom calling features, network access, directory assistance, and private lines. It also provides high-speed Internet, long distance, television, Internet protocol based network, managed, billing and collection, and wireless services; data center services, including colocation and virtual private cloud; customer premises equipment; and data solutions. As of December 31, 2017, the company served approximately 271,000 voice access lines; 22,000 business voice over Internet protocol lines; 110,000 high-speed Internet lines; and 45,000 video subscribers. Hawaiian Telcom Holdco, Inc. was founded in 1883 and is headquartered in Honolulu, Hawaii.
RigNet, Inc., a technology company, provides customized communications services, applications, and cybersecurity solutions in the United States and internationally. The company operates through three segments: Managed Services, Applications and Internet-of-Things (Apps & IoT), and Systems Integration. The Managed Services segment provides remote communications, telephony, and technology services, including data, Internet, and Voice over Internet Protocol services for offshore and onshore drilling rigs and production facilities, support vessels, and other remote sites. It also offers private networking and wide area network (WAN) acceleration solutions, software-defined appliances, content filtering, and Wi-Fi hotspots. The Apps & IoT segment provides supervisory control and data acquisition systems to monitor, gather, and process data while interacting with machines and devices, such as pipelines, valves, pumps, and motors; data analytics solutions to enhance customer productivity and safety; weather data monitoring services in the North Sea to support operations; adaptive video intelligence and video collaboration solutions; BlackTIE and CyphreLink cybersecurity offerings that protects customers data; and Wi-Fi hotspot solutions, which facilitate access to the Internet by personnel in remote facilities. The Systems Integration segment engages in the design, procurement, assembly and test, installation, and commissioning of communications systems, including WAN/LAN connectivity, access control, public address, microwave, and monitoring and control systems, as well as closed circuit televisions for monitoring and security. RigNet, Inc. was founded in 2000 and is headquartered in Houston, Texas.
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