Critical Review: Lithium Co.. (OTCMKTS:LTUM) & Cogent Communications (OTCMKTS:CCOI)

Lithium Co.. (OTCMKTS:LTUM) and Cogent Communications (NASDAQ:CCOI) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Volatility & Risk

Lithium Co.. has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Cogent Communications has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.

Institutional and Insider Ownership

96.3% of Cogent Communications shares are held by institutional investors. 10.7% of Cogent Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lithium Co.. and Cogent Communications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lithium Co.. N/A N/A -$220,000.00 N/A N/A
Cogent Communications $546.16 million 5.79 $37.52 million $0.76 87.97

Cogent Communications has higher revenue and earnings than Lithium Co…

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lithium Co.. and Cogent Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithium Co.. 0 0 0 0 N/A
Cogent Communications 0 5 3 0 2.38

Cogent Communications has a consensus target price of $81.57, suggesting a potential upside of 22.00%. Given Cogent Communications’ higher possible upside, analysts plainly believe Cogent Communications is more favorable than Lithium Co…

Profitability

This table compares Lithium Co.. and Cogent Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithium Co.. N/A -136.87% -132.71%
Cogent Communications 6.97% -20.17% 4.54%

Summary

Cogent Communications beats Lithium Co.. on 9 of the 10 factors compared between the two stocks.

About Lithium Co..

Lithium Corporation, an exploration stage mining company, engages in the identification, acquisition, and exploration of metals and minerals primarily in Nevada. It explores for lithium/boron/potassium, graphite, gold, and silver deposits. The company owns interests in the Fish Lake Valley property that includes 143 claims covering an area of approximately 11,360 acres located in northern Esmeralda County in west central Nevada; and San Emidio property comprising 20 claims, which cover an area of approximately 1,600 acres located in Washoe County in northwestern Nevada. It also hold interests in the BC Sugar flake property covering an area 19,816 acres located in the Cherryville area of British Columbia; and Hughes claims located in the 6 discrete prospect areas of Nevada. The company was formerly known as Utalk Communications Inc. and changed its name to Lithium Corporation in September 2009. Lithium Corporation was founded in 2007 and is headquartered in Elko, Nevada.

About Cogent Communications

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, Asia, Australia, and Brazil. The company offers on-net Internet access and private network services to law firms, financial services firms, advertising and marketing firms, other professional services businesses, other Internet service providers, telephone companies, cable television companies, Web hosting companies, content delivery network companies, and commercial content and application service providers. It also provides on-net services in carrier-neutral data centers, Cogent controlled data centers, and single-tenant office buildings. In addition, the company offers off-net services to businesses that are connected to its network primarily by means of ‘last mile’ access service lines obtained from other carriers primarily in the form of metropolitan Ethernet circuits. Further, it provides Internet connectivity to customers that are not located in buildings directly connected to its network, as well as offers voice services. The company operates 52 data centers. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.

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