Cogent Communications ( NASDAQ:CCOI ) and Great Elm Capital Group ( NASDAQ:GEC ) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Risk & Volatility
Cogent Communications has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Great Elm Capital Group has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.
Cogent Communications pays an annual dividend of $2.32 per share and has a dividend yield of 4.0%. Great Elm Capital Group does not pay a dividend. Cogent Communications pays out 368.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cogent Communications has raised its dividend for 7 consecutive years.
This table compares Cogent Communications and Great Elm Capital Group’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Cogent Communications 5.51% -23.57% 3.94% Great Elm Capital Group N/A -20.26% -8.17% Institutional & Insider Ownership
90.4% of Cogent Communications shares are held by institutional investors. Comparatively, 44.3% of Great Elm Capital Group shares are held by institutional investors. 10.2% of Cogent Communications shares are held by company insiders. Comparatively, 17.0% of Great Elm Capital Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for Cogent Communications and Great Elm Capital Group, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Cogent Communications 1 4 3 0 2.25 Great Elm Capital Group 0 0 0 0 N/A Cogent Communications currently has a consensus price target of $50.00, suggesting a potential downside of 12.95%. Given Cogent Communications’ higher probable upside, equities analysts plainly believe Cogent Communications is more favorable than Great Elm Capital Group.
Earnings & Valuation
This table compares Cogent Communications and Great Elm Capital Group’s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Cogent Communications $520.19 million 5.12 $28.67 million $0.63 91.17 Great Elm Capital Group $5.93 million 19.95 -$11.06 million N/A N/A Cogent Communications has higher revenue and earnings than Great Elm Capital Group.
Cogent Communications beats Great Elm Capital Group on 10 of the 14 factors compared between the two stocks.
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.
About Great Elm Capital Group
Great Elm Capital Group, Inc., through its subsidiaries, engages in investment management and real estate property rental businesses. It provides investment advisory services. The company was formerly known as Unwired Planet, Inc. and changed its name to Great Elm Capital Group, Inc. in June 2016. Great Elm Capital Group, Inc. was founded in 1994 and is headquartered in Waltham, Massachusetts.