Head-To-Head Comparison: Cogent Communications (NASDAQ:CCOI) versus Nuvera Communications (OTCMKTS:NUVR)

Nuvera Communications (OTCMKTS:NUVR) and Cogent Communications (NASDAQ:CCOI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Dividends

Nuvera Communications pays an annual dividend of $0.42 per share and has a dividend yield of 3.5%. Cogent Communications pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Nuvera Communications pays out -50.0% of its earnings in the form of a dividend. Cogent Communications pays out -2.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cogent Communications has raised its dividend for 14 consecutive years. Nuvera Communications is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Nuvera Communications and Cogent Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvera Communications	-5.83%	0.89%	0.31%
Cogent Communications	-21.57%	-117.56%	-6.78%

Valuation & Earnings

This table compares Nuvera Communications and Cogent Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvera Communications	$69.24 million	0.90	-$4.43 million	($0.84)	-14.20
Cogent Communications	$987.53 million	0.99	-$204.07 million	($4.08)	-4.87

Nuvera Communications has higher earnings, but lower revenue than Cogent Communications. Nuvera Communications is trading at a lower price-to-earnings ratio than Cogent Communications, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nuvera Communications and Cogent Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvera Communications	0	0	0	0	0.00
Cogent Communications	1	7	1	0	2.00

Cogent Communications has a consensus price target of $25.71, indicating a potential upside of 29.34%. Given Cogent Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Cogent Communications is more favorable than Nuvera Communications.

Risk and Volatility

Nuvera Communications has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Cogent Communications has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

13.4% of Nuvera Communications shares are owned by institutional investors. Comparatively, 92.4% of Cogent Communications shares are owned by institutional investors. 13.8% of Nuvera Communications shares are owned by company insiders. Comparatively, 11.4% of Cogent Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Cogent Communications beats Nuvera Communications on 9 of the 17 factors compared between the two stocks.

About Nuvera Communications

Nuvera Communications, Inc. operates as a diversified communications company in the United States. The company offers broadband Internet access and voice over Internet protocol (VoIP) phone services; voice services to make and receive telephone calls within a defined local calling area; and network access services to other communication carriers for the use of its facilities to terminate or originate long distance calls on its fiber network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; data services for business and residential customers; email and managed services comprising web hosting and design, online file back up, and online file storage; directory assistance, operator service, and long-distance private lines; directory publishing, bill processing, and other customer services; and fiber-delivered communications and managed information technology solutions, as well as sells and services customer premise equipment. In addition, the company is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systems. The company serves communities in Minnesota and Iowa through customer service call centers, its website, and commissioned sales representatives. The company was formerly known as New Ulm Telecom, Inc. and changed its name to Nuvera Communications, Inc. in June 2018. Nuvera Communications, Inc. was incorporated in 1905 and is headquartered in New Ulm, Minnesota.

About Cogent Communications

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Oceania, South America, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers. It also provides Internet access and private network services to customers that are not located in buildings directly connected to its network; and on-net services to customers located in buildings that are physically connected to its network. In addition, the company offers off-net services to corporate customers using other carriers' circuits to provide the last mile portion of the link from the customers' premises to the network. Further, it operates data centers that allow its customers to collocate their equipment and access the network. It serves primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations. Cogent Communications Holdings, Inc. was founded in 1999 and is headquartered in Washington, the District of Columbia.