Analyzing Cogent Communications Holdings (CCOI) and Its Peers
Cogent Communications Holdings (NASDAQ: CCOI) is one of 46 public companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its rivals? We will compare Cogent Communications Holdings to similar companies based on the strength of its profitability, dividends, valuation, analyst recommendations, institutional ownership, earnings and risk.
Valuation and Earnings
This table compares Cogent Communications Holdings and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Cogent Communications Holdings||$446.90 million||$14.92 million||129.03|
|Cogent Communications Holdings Competitors||$16.24 billion||$1.19 billion||5.62|
Cogent Communications Holdings’ rivals have higher revenue and earnings than Cogent Communications Holdings. Cogent Communications Holdings is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Cogent Communications Holdings pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. Cogent Communications Holdings pays out 533.3% 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 654.4% of their earnings in the form of a dividend.
Volatility & Risk
Cogent Communications Holdings has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Cogent Communications Holdings’ rivals have a beta of 0.27, suggesting that their average stock price is 73% less volatile than the S&P 500.
This is a breakdown of current recommendations for Cogent Communications Holdings and its rivals, 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||587||1695||2005||66||2.36|
Cogent Communications Holdings presently has a consensus price target of $42.67, indicating a potential downside of 8.14%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 49.26%. Given Cogent Communications Holdings’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Cogent Communications Holdings has less favorable growth aspects than its rivals.
Insider & Institutional Ownership
92.7% of Cogent Communications Holdings shares are held by institutional investors. Comparatively, 59.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 9.5% of Cogent Communications Holdings shares are held by company insiders. Comparatively, 5.3% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Cogent Communications Holdings and its rivals’ 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||1.88%||-2.33%||1.86%|
Cogent Communications Holdings rivals beat Cogent Communications Holdings on 8 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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