Critical Contrast: Cogent Communications Holdings (CCOI) vs. Its Peers
Cogent Communications Holdings (NASDAQ: CCOI) is one of 49 public companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its peers? We will compare Cogent Communications Holdings to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.
This is a summary of current ratings for Cogent Communications Holdings and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cogent Communications Holdings||5||6||4||0||1.93|
|Cogent Communications Holdings Competitors||576||1681||1992||66||2.36|
Cogent Communications Holdings currently has a consensus price target of $42.67, indicating a potential downside of 6.23%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 46.72%. Given Cogent Communications Holdings’ peers stronger consensus rating and higher possible upside, analysts clearly believe Cogent Communications Holdings has less favorable growth aspects than its peers.
Cogent Communications Holdings pays an annual dividend of $1.84 per share and has a dividend yield of 4.0%. Cogent Communications Holdings pays out 511.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.4% and pay out 364.0% of their earnings in the form of a dividend. Cogent Communications Holdings lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Valuation & Earnings
This table compares Cogent Communications Holdings and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Cogent Communications Holdings||$446.90 million||$14.92 million||126.39|
|Cogent Communications Holdings Competitors||$14.76 billion||$1.20 billion||179.01|
Cogent Communications Holdings’ peers have higher revenue and earnings than Cogent Communications Holdings. Cogent Communications Holdings is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Cogent Communications Holdings and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cogent Communications Holdings||3.37%||-23.86%||2.18%|
|Cogent Communications Holdings Competitors||1.72%||1.76%||1.83%|
Risk & Volatility
Cogent Communications Holdings has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Cogent Communications Holdings’ peers have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
92.3% of Cogent Communications Holdings shares are owned by institutional investors. Comparatively, 59.9% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 9.5% of Cogent Communications Holdings shares are owned by company insiders. Comparatively, 5.3% of shares of all “Integrated Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Cogent Communications Holdings peers beat Cogent Communications Holdings on 11 of the 15 factors compared.
About Cogent Communications Holdings
Cogent Communications Holdings, Inc. is a facilities-based provider of Internet access and Internet Protocol (IP), communications services. The Company’s network is specifically designed and optimized to transmit data using IP. The Company delivers its services primarily to small and medium-sized businesses, communications service providers and other bandwidth-intensive organizations in North America, Europe and in Japan. The Company offers on-net services in over 175 metropolitan markets. The Company serves 1,990 on-net buildings. The Company’s on-net service in North America is its Fast Ethernet service, which provides Internet access at 100 megabits per second. It also offers Internet access services at higher speeds of up to ten Gigabits per second. These services are generally used by customers that have businesses, such as Web hosting, that are Internet-based.
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