Cincinnati Bell (NYSE: CBB) and BT Group PLC (NYSE:BT) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Cincinnati Bell and BT Group PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cincinnati Bell 6.84% -3.87% 0.70%
BT Group PLC 7.14% 39.24% 6.77%

Valuation & Earnings

This table compares Cincinnati Bell and BT Group PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cincinnati Bell $1.17 billion 0.74 $282.90 million $1.65 12.48
BT Group PLC $31.04 billion 1.21 $8.82 billion $1.04 18.11

BT Group PLC has higher revenue and earnings than Cincinnati Bell. Cincinnati Bell is trading at a lower price-to-earnings ratio than BT Group PLC, indicating that it is currently the more affordable of the two stocks.

Dividends

BT Group PLC pays an annual dividend of $0.94 per share and has a dividend yield of 5.0%. Cincinnati Bell does not pay a dividend. BT Group PLC pays out 90.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cincinnati Bell has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

85.2% of Cincinnati Bell shares are held by institutional investors. Comparatively, 1.0% of BT Group PLC shares are held by institutional investors. 1.4% of Cincinnati Bell shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Cincinnati Bell has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, BT Group PLC has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cincinnati Bell and BT Group PLC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cincinnati Bell 2 2 1 0 1.80
BT Group PLC 3 7 8 0 2.28

Cincinnati Bell presently has a consensus price target of $23.50, indicating a potential upside of 14.08%. BT Group PLC has a consensus price target of $357.94, indicating a potential upside of 1,800.91%. Given BT Group PLC’s stronger consensus rating and higher possible upside, analysts clearly believe BT Group PLC is more favorable than Cincinnati Bell.

Summary

BT Group PLC beats Cincinnati Bell on 10 of the 17 factors compared between the two stocks.

Cincinnati Bell Company Profile

Cincinnati Bell Inc., along with its subsidiaries, provides diversified telecommunications and technology services. The Company operates through two segments: Entertainment and Communications, and IT Services and Hardware. Through its Entertainment and Communications segment, the Company provides high-speed data, video and voice solutions to consumers and businesses over fiber network and a legacy copper network. The IT Services and Hardware segments operates through its subsidiary, Cincinnati Bell Technology Solutions Inc. (CBTS), which is engaged in the sale and service of end-to-end communications and information technology (IT) systems and solutions for business customers across the United States. The Company has interest in CyrusOne Inc., which operates carrier-neutral data center colocation business.

BT Group PLC Company Profile

BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as managed networked information technology (IT) solutions and cyber security protection. Its segments include Consumer, which provides fixed-voice, broadband, TV and mobile services; EE, which is a mobile network operator in the United Kingdom and provides mobile and fixed communications services to consumers; Business and Public Sector, which provides communications and IT services to businesses and the public sector in the United Kingdom and the Republic of Ireland (RoI) ;Global Services, which provides managed networked IT services to corporate customers; Wholesale and Ventures, which provides fixed and mobile services to communications providers (CPs); and Openreach, which provides copper and fiber connections between its exchanges and homes and businesses.

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