Crown Castle International Corporation (NYSE: CCI) and Cogent Communications Holdings (NASDAQ:CCOI) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Crown Castle International Corporation pays an annual dividend of $3.80 per share and has a dividend yield of 3.6%. Cogent Communications Holdings pays an annual dividend of $1.84 per share and has a dividend yield of 4.4%. Crown Castle International Corporation pays out 304.0% 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 Holdings pays out 511.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crown Castle International Corporation has raised its dividend for 2 consecutive years.
Volatility and Risk
Crown Castle International Corporation has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Cogent Communications Holdings has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Insider & Institutional Ownership
84.2% of Crown Castle International Corporation shares are held by institutional investors. Comparatively, 94.3% of Cogent Communications Holdings shares are held by institutional investors. 0.4% of Crown Castle International Corporation shares are held by company insiders. Comparatively, 9.5% of Cogent Communications Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Crown Castle International Corporation and Cogent Communications Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crown Castle International Corporation||0||4||8||0||2.67|
|Cogent Communications Holdings||2||4||7||0||2.38|
Crown Castle International Corporation presently has a consensus price target of $104.05, suggesting a potential downside of 0.07%. Cogent Communications Holdings has a consensus price target of $42.45, suggesting a potential upside of 0.48%. Given Cogent Communications Holdings’ higher probable upside, analysts clearly believe Cogent Communications Holdings is more favorable than Crown Castle International Corporation.
This table compares Crown Castle International Corporation and Cogent Communications Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crown Castle International Corporation||11.14%||6.21%||1.95%|
|Cogent Communications Holdings||3.39%||-27.66%||2.24%|
Valuation & Earnings
This table compares Crown Castle International Corporation and Cogent Communications Holdings’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Crown Castle International Corporation||$4.08 billion||10.37||$2.17 billion||$1.25||83.30|
|Cogent Communications Holdings||$455.43 million||4.15||$143.43 million||$0.36||117.36|
Crown Castle International Corporation has higher revenue and earnings than Cogent Communications Holdings. Crown Castle International Corporation is trading at a lower price-to-earnings ratio than Cogent Communications Holdings, indicating that it is currently the more affordable of the two stocks.
Crown Castle International Corporation beats Cogent Communications Holdings on 10 of the 17 factors compared between the two stocks.
Crown Castle International Corporation Company Profile
Castle International Corp. (CCIC) is a real estate investment trust (REIT) company. The Company owns, operates and leases shared wireless infrastructure, including towers and other structures, such as rooftops (towers), and to a lesser extent, distributed antenna systems (DAS), a type of small cell network (small cells), and interests in land under third party towers in various forms (third party land interests). Its core business is renting space or physical capacity (collectively, space) on its towers, DAS and, to a lesser extent, third party land interests (collectively, site rental business) through long-term contracts in various forms, including license, sublease and lease agreements (collectively, contracts). The Company owned, leased or managed approximately 39,600 towers in the United States, including Puerto Rico, and approximately 1,700 towers in Australia.
Cogent Communications Holdings 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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