Cogent Communications Holdings (NASDAQ: CCOI) is one of 46 public companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its competitors? We will compare Cogent Communications Holdings to related businesses based on the strength of its risk, institutional ownership, profitability, dividends, analyst recommendations, valuation and earnings.

Valuation and Earnings

This table compares Cogent Communications Holdings and its competitors 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 4.29

Cogent Communications Holdings’ competitors have higher revenue and earnings than Cogent Communications Holdings. Cogent Communications Holdings is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Cogent Communications Holdings and its competitors’ 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%

Insider & Institutional Ownership

92.7% of Cogent Communications Holdings shares are owned by institutional investors. Comparatively, 59.3% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 9.5% of Cogent Communications Holdings shares are owned by insiders. Comparatively, 5.3% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cogent Communications Holdings and its competitors, as reported 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 currently has a consensus target price of $42.67, indicating a potential downside of 8.14%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 50.91%. Given Cogent Communications Holdings’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Cogent Communications Holdings has less favorable growth aspects than its competitors.

Risk & Volatility

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’ competitors have a beta of 0.27, suggesting that their average stock price is 73% less volatile than the S&P 500.

Summary

Cogent Communications Holdings competitors beat Cogent Communications Holdings on 8 of the 15 factors compared.

Cogent Communications Holdings Company Profile

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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