Financial Survey: Nuvera Communications (OTCMKTS:NUVR) vs. Verizon Communications (NYSE:VZ)

Verizon Communications (NYSE:VZ) and Nuvera Communications (OTCMKTS:NUVR) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Insider and Institutional Ownership

62.1% of Verizon Communications shares are held by institutional investors. Comparatively, 13.4% of Nuvera Communications shares are held by institutional investors. 0.0% of Verizon Communications shares are held by insiders. Comparatively, 11.3% of Nuvera Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Verizon Communications and Nuvera Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verizon Communications	0	9	8	0	2.47
Nuvera Communications	0	0	0	0	0.00

Verizon Communications currently has a consensus price target of $46.37, suggesting a potential upside of 4.57%. Given Verizon Communications’ stronger consensus rating and higher possible upside, research analysts clearly believe Verizon Communications is more favorable than Nuvera Communications.

Profitability

This table compares Verizon Communications and Nuvera Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verizon Communications	7.30%	20.05%	5.07%
Nuvera Communications	-11.65%	1.33%	0.49%

Valuation & Earnings

This table compares Verizon Communications and Nuvera Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verizon Communications	$133.97 billion	1.39	$11.61 billion	$2.32	19.11
Nuvera Communications	$65.79 million	0.68	-$3.21 million	($1.54)	-5.58

Verizon Communications has higher revenue and earnings than Nuvera Communications. Nuvera Communications is trading at a lower price-to-earnings ratio than Verizon Communications, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Verizon Communications has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Nuvera Communications has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Summary

Verizon Communications beats Nuvera Communications on 13 of the 14 factors compared between the two stocks.

About Verizon Communications

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smart watches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.

About Nuvera Communications

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; 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 fiber network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; data services for business and residential customers; email 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, the company is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systems. The company serves communities in Minnesota and Iowa through customer service call centers, its website, and commissioned sales representatives. 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.