Comparing Cogent Communications (CCOI) and NCC Group (NCCGF)

Cogent Communications (NASDAQ:CCOI) and NCC Group (OTCMKTS:NCCGF) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Cogent Communications and NCC Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cogent Communications 1 7 1 0 2.00
NCC Group 0 0 1 0 3.00

Cogent Communications presently has a consensus price target of $50.00, indicating a potential downside of 12.56%. Given Cogent Communications’ higher possible upside, equities analysts plainly believe Cogent Communications is more favorable than NCC Group.

Earnings and Valuation

This table compares Cogent Communications and NCC 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 5.10 $28.67 million $0.63 90.76
NCC Group N/A N/A N/A N/A N/A

Cogent Communications has higher revenue and earnings than NCC Group.

Profitability

This table compares Cogent Communications and NCC Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cogent Communications 5.92% -22.47% 4.15%
NCC Group N/A N/A N/A

Insider & Institutional Ownership

91.3% of Cogent Communications shares are owned by institutional investors. 10.2% of Cogent Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Cogent Communications pays an annual dividend of $2.32 per share and has a dividend yield of 4.1%. NCC 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.

Risk and Volatility

Cogent Communications has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, NCC Group has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.

Summary

Cogent Communications beats NCC Group on 9 of the 12 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 NCC Group

NCC Group plc provides cyber security and risk mitigation services in the United Kingdom, the United States, Europe, and internationally. The company operates through two segments, Escrow and Assurance. It offers software escrow solutions that include escrow agreements, software verification, secure verification, software as a service assured, Internet corporation for assigned names and numbers compliance, and software risk assessment solutions. The company also provides cyber security services, such as penetration testing and security assessments, managed detection and response, vulnerability discovery and management, compliance and accreditations, risk management, products and cloud services, technology solutions, threat intelligence, and specialist practices; and Web performance solutions, including performance review, mobile performance review, third-party tag review, performance workshop, digital performance management, digital performance strategy, and Web performance testing services. It serves customers in transport industry that include automotive, maritime, aerospace, and rail; and oil and gas, Internet of Thing, finance, small business, and retail sectors. NCC Group plc was founded in 1999 and is headquartered in Manchester, the United Kingdom.

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