Cogent Communications (NASDAQ: CCOI) is one of 48 public companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare Cogent Communications to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Volatility & Risk

Cogent Communications has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Cogent Communications’ peers have a beta of 0.96, indicating that their average stock price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cogent Communications and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cogent Communications $446.90 million $14.92 million 124.17
Cogent Communications Competitors $16.60 billion $1.32 billion 9.33

Cogent Communications’ peers have higher revenue and earnings than Cogent Communications. Cogent Communications 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.

Profitability

This table compares Cogent Communications and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cogent Communications 3.37% -23.86% 2.18%
Cogent Communications Competitors 2.39% -0.81% 2.02%

Dividends

Cogent Communications pays an annual dividend of $1.92 per share and has a dividend yield of 4.3%. Cogent Communications 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 4.3% and pay out 621.0% of their earnings in the form of a dividend.

Insider & Institutional Ownership

95.6% of Cogent Communications shares are held by institutional investors. Comparatively, 60.1% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 9.5% of Cogent Communications shares are held by company insiders. Comparatively, 5.0% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cogent Communications and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cogent Communications 5 6 4 0 1.93
Cogent Communications Competitors 592 1699 2024 66 2.36

Cogent Communications presently has a consensus price target of $42.67, indicating a potential downside of 4.55%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 70.63%. Given Cogent Communications’ peers stronger consensus rating and higher probable upside, analysts plainly believe Cogent Communications has less favorable growth aspects than its peers.

Summary

Cogent Communications peers beat Cogent Communications on 9 of the 15 factors compared.

About Cogent Communications

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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