Financial Analysis: Multiband Corp (MBND) versus Fusion Telecommunications International (FSNN)

Multiband Corp (NASDAQ: MBND) and Fusion Telecommunications International (NASDAQ:FSNN) are both small-cap wired telecommunications carriers companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

22.1% of Fusion Telecommunications International shares are owned by institutional investors. 19.1% of Fusion Telecommunications International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Multiband Corp has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Fusion Telecommunications International has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Multiband Corp and Fusion Telecommunications International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Multiband Corp 0 0 0 0 N/A
Fusion Telecommunications International 0 0 2 0 3.00

Fusion Telecommunications International has a consensus price target of $4.00, suggesting a potential upside of 65.29%.

Profitability

This table compares Multiband Corp and Fusion Telecommunications International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Multiband Corp N/A N/A N/A
Fusion Telecommunications International -10.47% -202.95% -11.41%

Earnings and Valuation

This table compares Multiband Corp and Fusion Telecommunications International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Multiband Corp N/A N/A N/A $0.20 N/A
Fusion Telecommunications International $122.04 million 0.45 -$12.71 million ($0.86) -2.81

Multiband Corp has higher revenue, but lower earnings than Fusion Telecommunications International. Fusion Telecommunications International is trading at a lower price-to-earnings ratio than Multiband Corp, indicating that it is currently the more affordable of the two stocks.

Summary

Fusion Telecommunications International beats Multiband Corp on 5 of the 9 factors compared between the two stocks.

About Multiband Corp

Multiband Corporation provides contract installation services for the pay television industry (including satellite and broadband cable operators), Internet providers and retailers, voice, data and video services to residents of multi-dwelling units. It operates in three segments: Field Services (FS), where the Company provides installation services to pay television (satellite and broadband cable) providers, Internet providers and commercial customers; Multi-Dwelling Unit (MDU), where the Company bills voice, Internet and video services to subscribers as owner/operator and also acts as a master service operator for DIRECTV, receiving net cash payments for managing video subscribers through its network of system operators, and Engineering, Energy & Construction (EE&C) where the Company provides engineering and construction services for the wired and wireless telecommunications industry, including public safety networks. In August 2013, Goodman Networks Inc acquired the Company.

About Fusion Telecommunications International

Fusion Telecommunications International, Inc. is a United States-based provider of integrated cloud solutions, including cloud voice, cloud connectivity, cloud infrastructure, cloud computing, and managed cloud-based applications to businesses, and voice over Internet Protocol (VoIP)-based voice services to carriers. The Company operates through two segments: Business Services and Carrier Services. Through Business Services segment, it provides cloud voice, cloud connectivity, cloud infrastructure, cloud computing and managed cloud-based applications to businesses of all sizes. Its suite of business services includes unified communications as a service, session initiation protocol trunking solution and file sharing solution. The Carrier Services segment includes termination of domestic and international carrier traffic utilizing VoIP technology. It offers solutions to small, medium and large businesses. It offers domestic and international VoIP services to carriers around the world.

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