Analyzing j2 Global (JCOM) & The Competition

j2 Global (NASDAQ: JCOM) is one of 42 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it compare to its rivals? We will compare j2 Global to similar companies based on the strength of its risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Volatility & Risk

j2 Global has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, j2 Global’s rivals have a beta of 0.94, meaning that their average share price is 6% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
j2 Global $874.26 million $152.43 million 26.81
j2 Global Competitors $16.60 billion $1.32 billion 169.81

j2 Global’s rivals have higher revenue and earnings than j2 Global. j2 Global is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

j2 Global pays an annual dividend of $1.54 per share and has a dividend yield of 2.1%. j2 Global pays out 57.0% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.6% and pay out 661.4% of their earnings in the form of a dividend.

Insider & Institutional Ownership

59.9% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 5.2% of j2 Global shares are held by insiders. Comparatively, 5.3% of shares of all “Integrated Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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 2.59% 4.53% 2.38%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
j2 Global 0 1 3 0 2.75
j2 Global Competitors 483 1496 1643 57 2.35

j2 Global presently has a consensus price target of $101.75, indicating a potential upside of 40.56%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 49.74%. Given j2 Global’s rivals higher probable upside, analysts clearly believe j2 Global has less favorable growth aspects than its rivals.

Summary

j2 Global rivals beat j2 Global on 9 of the 15 factors compared.

j2 Global Company Profile

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’s 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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