Critical Review: CyrusOne (CONE) & The Competition
CyrusOne (NASDAQ: CONE) is one of 16 public companies in the “Specialized REITs” industry, but how does it contrast to its rivals? We will compare CyrusOne to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Risk & Volatility
CyrusOne has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, CyrusOne’s rivals have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.
CyrusOne pays an annual dividend of $1.68 per share and has a dividend yield of 2.8%. CyrusOne pays out -541.9% of its earnings in the form of a dividend. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 169.6% of their earnings in the form of a dividend.
Earnings and Valuation
This table compares CyrusOne and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|CyrusOne Competitors||$1.00 billion||$531.02 million||28.23|
CyrusOne’s rivals have higher revenue and earnings than CyrusOne. CyrusOne is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent recommendations and price targets for CyrusOne and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CyrusOne presently has a consensus price target of $60.67, indicating a potential upside of 2.29%. As a group, “Specialized REITs” companies have a potential upside of 14.55%. Given CyrusOne’s rivals higher possible upside, analysts clearly believe CyrusOne has less favorable growth aspects than its rivals.
Institutional & Insider Ownership
96.5% of CyrusOne shares are held by institutional investors. Comparatively, 64.6% of shares of all “Specialized REITs” companies are held by institutional investors. 1.6% of CyrusOne shares are held by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares CyrusOne and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CyrusOne rivals beat CyrusOne on 10 of the 14 factors compared.
CyrusOne Inc. is a real estate investment trust. The Company is an owner, operator and developer of enterprise-class, carrier-neutral, multi-tenant data center properties. The Company’s data centers are generally purpose-built facilities with redundant power and cooling. The CyrusOne National IX Platform (the National IX Platform) delivers interconnection across states and between metro-enabled sites within its footprint and beyond. The Company has data centers in the United States, London and Singapore. As of December 31, 2016, the Company provided mission-critical data center facilities for 932 customers in 35 data centers and two recovery centers in 11 distinct markets (nine cities in the United States, London and Singapore) with approximately 3,904,000 net rentable square feet (NRSF). The Company provides round the clock security guard monitoring with customizable security features. As of December 31, 2016, the Company had approximately 1,657,000 NRSF under development.
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