Cincinnati Bell (NYSE:CBB) and Maxcom Telecomunic (OTCMKTS:MXMTY) are both small-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Risk & Volatility
Cincinnati Bell has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Maxcom Telecomunic has a beta of -1.74, suggesting that its share price is 274% less volatile than the S&P 500.
This table compares Cincinnati Bell and Maxcom Telecomunic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Cincinnati Bell and Maxcom Telecomunic’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cincinnati Bell||$1.38 billion||0.17||-$69.80 million||($1.11)||-4.23|
|Maxcom Telecomunic||$68.52 million||0.24||-$14.60 million||N/A||N/A|
Maxcom Telecomunic has lower revenue, but higher earnings than Cincinnati Bell.
This is a breakdown of current recommendations and price targets for Cincinnati Bell and Maxcom Telecomunic, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cincinnati Bell currently has a consensus target price of $11.50, indicating a potential upside of 144.68%. Given Cincinnati Bell’s higher possible upside, equities analysts plainly believe Cincinnati Bell is more favorable than Maxcom Telecomunic.
Insider & Institutional Ownership
95.0% of Cincinnati Bell shares are owned by institutional investors. 2.4% of Cincinnati Bell shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Cincinnati Bell beats Maxcom Telecomunic on 9 of the 11 factors compared between the two stocks.
About Cincinnati Bell
Cincinnati Bell Inc., together with its subsidiaries, provides diversified telecommunications and technology services to residential and business customers in the United States. It operates in two segments, Entertainment and Communications, and IT Services and Hardware. The Entertainment and Communications segment offers data services, including high-speed Internet access, data transport, and interconnection services, as well as metro-Ethernet products; and voice local services, as well as long distance, digital trunking, switched access, and other value-added services, such as caller identification, voicemail, call waiting, and call return. This segment also provides video services comprising entertainment channels, including digital music, local, movie, and sports programming with high-definition (HD) channels, parental controls, HD DVR, and video on-demand. In addition, this segment undertakes wiring projects for business customers; and offers advertising, directory assistance, maintenance, and information services. The IT Services and Hardware segment provides consulting services consisting of IT staffing and project-based engagements, including engineering and installation of voice, connectivity and IT technologies, development of digital application solutions, and staff augmentation; and hosted solutions comprising converged IP communications platforms of data, voice, video, and mobility applications. This segment also offers cloud services, such as virtual data center, storage, and backup services; and monitoring and managing technology environments and applications, as well as sells, architects, and installs telecommunications and IT infrastructure equipment. The company was founded in 1873 and is headquartered in Cincinnati, Ohio.
About Maxcom Telecomunic
Maxcom Telecomunicaciones S.A.B. de C.V. provides telecommunication services in Mexico. Its solutions include dedicated Internet; L2L, a service through a point-to-point circuit to create private networks by interconnecting two client addressing within the same local area; MPLS B-TIC service that allows the integration of IP traffic, including voice, data, or video in the same connection; 01800, a long distance service; and SIP TRUNKS, a voice over IP solution. The company serves various sectors in hospitality and health, finance, call center, education, government, retail, manufacture, and building, as well as other companies. Maxcom Telecomunicaciones S.A.B. de C.V. was founded in 1996 and is based in Mexico City, Mexico.
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