Cincinnati Bell (NYSE: CBB) and Cogent Communications (NASDAQ:CCOI) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Cogent Communications pays an annual dividend of $1.92 per share and has a dividend yield of 4.2%. Cincinnati Bell does not pay a dividend. 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.
This table compares Cincinnati Bell and Cogent Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cincinnati Bell||$1.19 billion||0.67||$102.10 million||$0.94||20.00|
|Cogent Communications||$446.90 million||4.66||$14.92 million||$0.36||125.83|
Cincinnati Bell has higher revenue and earnings than Cogent Communications. Cincinnati Bell is trading at a lower price-to-earnings ratio than Cogent Communications, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
83.5% of Cincinnati Bell shares are owned by institutional investors. Comparatively, 95.5% of Cogent Communications shares are owned by institutional investors. 1.4% of Cincinnati Bell shares are owned by company insiders. Comparatively, 9.5% of Cogent Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Cincinnati Bell and Cogent Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Cincinnati Bell and Cogent Communications, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cincinnati Bell presently has a consensus price target of $24.00, suggesting a potential upside of 27.66%. Cogent Communications has a consensus price target of $41.40, suggesting a potential downside of 8.61%. Given Cincinnati Bell’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cincinnati Bell is more favorable than Cogent Communications.
Risk and Volatility
Cincinnati Bell has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Cogent Communications has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Cincinnati Bell beats Cogent Communications on 9 of the 16 factors compared between the two stocks.
Cincinnati Bell Company Profile
Cincinnati Bell Inc., along with its subsidiaries, provides diversified telecommunications and technology services. The Company operates through two segments: Entertainment and Communications, and IT Services and Hardware. Through its Entertainment and Communications segment, the Company provides high-speed data, video and voice solutions to consumers and businesses over fiber network and a legacy copper network. The IT Services and Hardware segments operates through its subsidiary, Cincinnati Bell Technology Solutions Inc. (CBTS), which is engaged in the sale and service of end-to-end communications and information technology (IT) systems and solutions for business customers across the United States. The Company has interest in CyrusOne Inc., which operates carrier-neutral data center colocation business.
Cogent Communications 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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