Gamma Communications (GAMA) Competitors

Airtel Africa (LON:AAF) and Gamma Communications (LON:GAMA) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, community ranking, dividends, institutional ownership, valuation, earnings, risk, analyst recommendations and media sentiment.

Is AAF or GAMA a better dividend stock?

Airtel Africa pays an annual dividend of GBX 5 per share and has a dividend yield of 4.9%. Gamma Communications pays an annual dividend of GBX 18 per share and has a dividend yield of 1.1%. Airtel Africa pays out -16,666.7% of its earnings in the form of a dividend. Gamma Communications pays out 3,103.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Airtel Africa is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do institutionals & insiders hold more shares of AAF or GAMA?

22.2% of Airtel Africa shares are held by institutional investors. Comparatively, 72.2% of Gamma Communications shares are held by institutional investors. 72.6% of Airtel Africa shares are held by company insiders. Comparatively, 3.4% of Gamma Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Which has more volatility and risk, AAF or GAMA?

Airtel Africa has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Gamma Communications has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Is AAF or GAMA more profitable?

Gamma Communications has a net margin of 10.29% compared to Airtel Africa's net margin of 0.25%. Gamma Communications' return on equity of 16.63% beat Airtel Africa's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Airtel Africa	0.25%	3.43%	9.60%
Gamma Communications	10.29%	16.63%	11.78%

Which has preferable earnings & valuation, AAF or GAMA?

Gamma Communications has lower revenue, but higher earnings than Airtel Africa. Airtel Africa is trading at a lower price-to-earnings ratio than Gamma Communications, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airtel Africa	£4.78B	0.79	£12M	-£0.03	-3,420.00
Gamma Communications	£548M	2.81	£56.40M	£0.58	2,775.86

Do analysts rate AAF or GAMA?

Airtel Africa currently has a consensus target price of GBX 136.67, suggesting a potential upside of 33.20%. Gamma Communications has a consensus target price of GBX 2,140, suggesting a potential upside of 32.92%. Given Airtel Africa's higher probable upside, analysts plainly believe Airtel Africa is more favorable than Gamma Communications.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airtel Africa	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67
Gamma Communications	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the MarketBeat Community prefer AAF or GAMA?

Gamma Communications received 167 more outperform votes than Airtel Africa when rated by MarketBeat users. However, 85.71% of users gave Airtel Africa an outperform vote while only 70.22% of users gave Gamma Communications an outperform vote.

Company	Underperform	Outperform
Airtel Africa	Outperform Votes 24 85.71%	Underperform Votes 4 14.29%
Gamma Communications	Outperform Votes 191 70.22%	Underperform Votes 81 29.78%

Does the media refer more to AAF or GAMA?

In the previous week, Gamma Communications had 2 more articles in the media than Airtel Africa. MarketBeat recorded 3 mentions for Gamma Communications and 1 mentions for Airtel Africa. Gamma Communications' average media sentiment score of 0.39 beat Airtel Africa's score of 0.08 indicating that Gamma Communications is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Airtel Africa	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Gamma Communications	0 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

Gamma Communications beats Airtel Africa on 13 of the 20 factors compared between the two stocks.