Data Storage (NASDAQ:DTST – Get Free Report) and Liberty Latin America (NASDAQ:LILA – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Data Storage and Liberty Latin America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Data Storage | 1,247.09% | -5.48% | -4.86% |
| Liberty Latin America | -2.20% | -9.29% | -0.81% |
Valuation & Earnings
This table compares Data Storage and Liberty Latin America”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Data Storage | $1.38 million | 5.82 | $19.20 million | ($0.76) | -4.51 |
| Liberty Latin America | $4.44 billion | 0.39 | -$611.20 million | ($0.49) | -18.14 |
Data Storage has higher earnings, but lower revenue than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Data Storage, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Data Storage has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
Insider & Institutional Ownership
11.6% of Data Storage shares are owned by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are owned by institutional investors. 21.2% of Data Storage shares are owned by insiders. Comparatively, 6.2% of Liberty Latin America shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Data Storage and Liberty Latin America, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Data Storage | 1 | 0 | 0 | 0 | 1.00 |
| Liberty Latin America | 2 | 1 | 1 | 0 | 1.75 |
Liberty Latin America has a consensus target price of $10.00, suggesting a potential upside of 12.49%. Given Liberty Latin America’s stronger consensus rating and higher probable upside, analysts clearly believe Liberty Latin America is more favorable than Data Storage.
About Data Storage
Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.
About Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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