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

Insider and Institutional Ownership

60.1% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 5.2% of j2 Global shares are owned by company insiders. Comparatively, 5.0% of shares of all “Integrated Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares j2 Global and its rivals’ 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 2.16% -1.75% 1.88%

Earnings & Valuation

This table compares j2 Global and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
j2 Global $874.26 million $152.43 million 27.73
j2 Global Competitors $16.60 billion $1.32 billion 2.33

j2 Global’s rivals have higher revenue and earnings than j2 Global. j2 Global 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.

Volatility & Risk

j2 Global has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, j2 Global’s rivals have a beta of 0.98, indicating that their average stock price is 2% less volatile than the S&P 500.

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 4.4% and pay out -497.5% of their earnings in the form of a dividend. j2 Global lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
j2 Global 0 1 3 0 2.75
j2 Global Competitors 592 1701 2024 66 2.36

j2 Global currently has a consensus price target of $101.75, suggesting a potential upside of 35.92%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 53.23%. Given j2 Global’s rivals higher possible upside, analysts plainly believe j2 Global has less favorable growth aspects than its rivals.

Summary

j2 Global rivals beat j2 Global on 8 of the 15 factors compared.

About j2 Global

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‚Äôs 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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