Head to Head Comparison: j2 Global (JCOM) & Its Rivals

j2 Global (NASDAQ: JCOM) is one of 47 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its peers? We will compare j2 Global to similar businesses based on the strength of its analyst recommendations, earnings, profitability, risk, valuation, institutional ownership and dividends.

Dividends

j2 Global pays an annual dividend of $1.58 per share and has a dividend yield of 2.1%. j2 Global pays out 58.5% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.3% and pay out 602.7% of their earnings in the form of a dividend.

Institutional and Insider Ownership

60.1% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 5.2% of j2 Global shares are held by insiders. Comparatively, 5.0% of shares of all “Integrated Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

j2 Global has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, j2 Global’s peers have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Profitability

This table compares j2 Global and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
j2 Global 12.60% 26.43% 11.11%
j2 Global Competitors 2.09% -1.58% 1.94%

Earnings & Valuation

This table compares j2 Global and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
j2 Global $874.26 million $152.43 million 27.63
j2 Global Competitors $16.60 billion $1.32 billion 13.55

j2 Global’s peers have higher revenue and earnings than j2 Global. j2 Global is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for j2 Global and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
j2 Global 0 1 3 0 2.75
j2 Global Competitors 592 1698 2015 66 2.36

j2 Global presently has a consensus price target of $101.75, suggesting a potential upside of 36.38%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 44.16%. Given j2 Global’s peers higher probable upside, analysts plainly believe j2 Global has less favorable growth aspects than its peers.

Summary

j2 Global beats its peers on 8 of the 15 factors compared.

j2 Global Company Profile

j2 Global, Inc. is a provider of services delivered through the Internet. The Company provides cloud services to businesses of all sizes, from individuals to enterprises. The Company operates in two segments: Business Cloud Services and Digital Media. The Company’s Digital Media business segment consists of the Web properties and business operations of Ziff Davis, Inc. (Ziff Davis). The Company’s cloud services and solutions include fax, voice and unified communications, email and customer relationship management, online backup, global network and operations, and customer support services. In February 2013, it acquired IGN Entertainment, Inc. On November 9, 2012, the Company acquired Ziff Davis. Effective March 18, 2013, it acquired MetroFax Inc. In April 2013, the Company acquired Backup Connect BV.

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