Cogent Communications (NASDAQ: CCOI) and Neustar (NYSE:NSR) are both telecommunications services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Earnings & Valuation
This table compares Cogent Communications and Neustar’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cogent Communications||$485.17 million||4.14||$5.87 million||$0.38||115.00|
Cogent Communications pays an annual dividend of $2.00 per share and has a dividend yield of 4.6%. Neustar does not pay a dividend. Cogent Communications pays out 526.3% 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 is a summary of recent ratings and recommmendations for Cogent Communications and Neustar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cogent Communications presently has a consensus target price of $43.44, suggesting a potential downside of 0.58%.
Insider & Institutional Ownership
95.7% of Cogent Communications shares are held by institutional investors. Comparatively, 88.8% of Neustar shares are held by institutional investors. 9.5% of Cogent Communications shares are held by company insiders. Comparatively, 2.9% of Neustar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Cogent Communications and Neustar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cogent Communications beats Neustar on 6 of the 11 factors compared between the two stocks.
About Cogent Communications
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.
NeuStar, Inc. is a global information services provider. The Company’s cloud-based platforms and differentiated data sets offer informative, real-time analytics, which enable clients to make actionable, data-driven decisions. It provides chief marketing officers a suite of services to plan their media spends, identify and locate desired customers, invest in marketing campaigns, deliver relevant offers and measure the performance of these activities. Security professionals use the Company’s solutions to maximize Web performance and protect against malicious attacks. It enables the exchange of essential operating information across multiple carriers to provision and manage services, assisting clients with order processing and routing of customer inquiries. The Company’s services include marketing services, security services, data services and number portability administration center (NPAC) services.
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