Cogent Communications (NASDAQ:CCOI) & Magyar Telekom Tavkozlesi Nyrt (NASDAQ:MYTAY) Critical Survey

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Cogent Communications and Magyar Telekom Tavkozlesi Nyrt, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cogent Communications 0 5 3 0 2.38
Magyar Telekom Tavkozlesi Nyrt 0 0 0 0 N/A

Cogent Communications currently has a consensus price target of $81.57, indicating a potential upside of 22.00%. Given Cogent Communications’ higher possible upside, analysts plainly believe Cogent Communications is more favorable than Magyar Telekom Tavkozlesi Nyrt.

Insider & Institutional Ownership

96.3% of Cogent Communications shares are owned by institutional investors. Comparatively, 0.0% of Magyar Telekom Tavkozlesi Nyrt shares are owned by institutional investors. 10.7% of Cogent Communications shares are owned by company 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.

Risk and Volatility

Cogent Communications has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Magyar Telekom Tavkozlesi Nyrt has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cogent Communications and Magyar Telekom Tavkozlesi Nyrt’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cogent Communications $546.16 million 5.79 $37.52 million $0.76 87.97
Magyar Telekom Tavkozlesi Nyrt $2.22 billion 0.56 $139.93 million N/A N/A

Magyar Telekom Tavkozlesi Nyrt has higher revenue and earnings than Cogent Communications.

Dividends

Cogent Communications pays an annual dividend of $2.82 per share and has a dividend yield of 4.2%. Magyar Telekom Tavkozlesi Nyrt pays an annual dividend of $0.25 per share and has a dividend yield of 4.2%. Cogent Communications pays out 371.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cogent Communications has raised its dividend for 7 consecutive years. Cogent Communications is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cogent Communications and Magyar Telekom Tavkozlesi Nyrt’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cogent Communications 6.97% -20.17% 4.54%
Magyar Telekom Tavkozlesi Nyrt 6.23% 7.00% 3.55%

Summary

Cogent Communications beats Magyar Telekom Tavkozlesi Nyrt on 9 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 Magyar Telekom Tavkozlesi Nyrt

Magyar Telekom Telecommunications Public Limited Company provides fixed line and mobile telecommunication services for public and business customers in Hungary and internationally. The company's mobile services include voice and non-voice mobile services, such as SMS, MMS, Internet, data, and content; and fixed line services comprise voice, data, Internet, and TV services. It also sells equipment for using fixed line and mobile services, including telephones, tablets, notebooks, TV sets, etc. In addition, the company provides fixed line wholesale services comprising leased line and IP, wholesale bit stream access and local loop unbundling services, wholesale voice and associated network access and other commercial services, and wholesale products designed for the retail services of CATV companies and individual solutions; mobile wholesale services, such as mobile interconnect and interworking products, and roaming services; and international wholesale voice and data services, as well as offers IPv6 dual-stack services to its residential customers. Further, it offers Internet Exchange (MT-IX), a physical infrastructure to facilitate the exchange of Internet traffic among the members of the MT-IX in various autonomous systems; and system integration and IT services. Additionally, the company provides electricity and natural gas services. The company was founded in 1991 and is headquartered in Budapest, Hungary. Magyar Telekom Telecommunications PLC is a subsidiary of Deutsche Telekom Europe B.V.

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