Financial Comparison: Cogent Communications Holdings (CCOI) & The Competition

Cogent Communications Holdings (NASDAQ: CCOI) is one of 40 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its peers? We will compare Cogent Communications Holdings to related businesses based on the strength of its earnings, valuation, risk, dividends, profitability, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

92.3% of Cogent Communications Holdings shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 9.5% of Cogent Communications Holdings shares are owned by company insiders. Comparatively, 5.5% of shares of all “Integrated Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Cogent Communications Holdings pays an annual dividend of $1.84 per share and has a dividend yield of 3.9%. Cogent Communications Holdings pays out 511.1% 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 4.9% and pay out -609.2% of their earnings in the form of a dividend. Cogent Communications Holdings lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Cogent Communications Holdings and its peers’ 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 0.01% 0.66% 1.33%

Risk and Volatility

Cogent Communications Holdings has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Cogent Communications Holdings’ peers have a beta of 0.99, indicating that their average stock price is 1% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Cogent Communications Holdings $446.90 million $14.92 million 130.42
Cogent Communications Holdings Competitors $18.59 billion $1.45 billion -51.43

Cogent Communications Holdings’ peers have higher revenue and earnings than Cogent Communications Holdings. Cogent Communications Holdings 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 breakdown of recent ratings for Cogent Communications Holdings and its peers, 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 461 1391 1567 57 2.35

Cogent Communications Holdings presently has a consensus price target of $42.67, indicating a potential downside of 9.12%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 52.29%. Given Cogent Communications Holdings’ peers stronger consensus rating and higher probable upside, analysts clearly believe Cogent Communications Holdings has less favorable growth aspects than its peers.

Summary

Cogent Communications Holdings peers beat Cogent Communications Holdings on 10 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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