Reviewing GTT Communications (GTT) and Zayo Group (ZAYO)
GTT Communications (NYSE: ZAYO) and Zayo Group (NYSE:ZAYO) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.
Risk and Volatility
GTT Communications has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Zayo Group has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
76.1% of GTT Communications shares are owned by institutional investors. Comparatively, 94.7% of Zayo Group shares are owned by institutional investors. 23.0% of GTT Communications shares are owned by company insiders. Comparatively, 5.2% of Zayo Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for GTT Communications and Zayo Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GTT Communications currently has a consensus price target of $51.63, suggesting a potential upside of 19.09%. Zayo Group has a consensus price target of $43.00, suggesting a potential upside of 25.04%. Given Zayo Group’s stronger consensus rating and higher probable upside, analysts clearly believe Zayo Group is more favorable than GTT Communications.
This table compares GTT Communications and Zayo Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares GTT Communications and Zayo Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GTT Communications||$827.90 million||2.86||-$71.50 million||$0.24||180.63|
|Zayo Group||$2.60 billion||3.26||$101.90 million||$0.61||56.38|
Zayo Group has higher revenue and earnings than GTT Communications. Zayo Group is trading at a lower price-to-earnings ratio than GTT Communications, indicating that it is currently the more affordable of the two stocks.
Zayo Group beats GTT Communications on 11 of the 14 factors compared between the two stocks.
About GTT Communications
GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers worldwide. The company provides private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless access services; managed equipment and security services; and voice and unified communications services consisting of SIP trunking and enterprise PBX services. It also offers video transport services for the transmission of live events, sport, entertainment, and news to broadcasters and cable programming providers; and network access services. The company's IP network consists of approximately 600 points of presence. GTT Communications, Inc. markets its products and services through a network of direct sales force and indirect sales channels. The company was formerly known as Global Telecom & Technology, Inc. and changed its name to GTT Communications, Inc. in January 2014. GTT Communications, Inc. was founded in 2005 and is headquartered in McLean, Virginia.
About Zayo Group
Zayo Group Holdings, Inc., through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States, Canada, and Europe. The company operates in six segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation (zColo), Allstream, and Other. The Fiber Solutions segment provides dark fiber, and fiber-to-the-tower and small cell mobile infrastructure services for carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies, large enterprises, and other companies. The Transport segment offers lit bandwidth infrastructure solutions comprising wavelength, wholesale IP services, and SONET services through its metro, regional, and long-haul fiber networks for carriers, content providers, financial services companies, healthcare, government entities, education institutions, and other medium and large enterprises. The Enterprise Networks segment provides communication solutions, such as Ethernet, enterprise private and connectivity services, managed services, and cloud based compute and storage products to medium and large enterprises. The Zayo Colocation (zColo) segment offers data center infrastructure solutions, including colocation space, and power and interconnection services to a range of enterprise, carrier, cloud, and content customers. The Allstream segment provides Internet protocol (IP), Internet, voice, IP trunking, cloud private branch exchange, and collaboration services, as well as unified communications for small and medium business customers. The Other segment provides network and technical resources to customers in designing, acquiring, and maintaining their networks. Zayo Group Holdings, Inc. was founded in 2007 and is headquartered in Boulder, Colorado.
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