Cincinnati Bell (NYSE:CBB) and IDT (NYSE:IDT) are both small-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Risk and Volatility
Cincinnati Bell has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, IDT has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Profitability
This table compares Cincinnati Bell and IDT's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Cincinnati Bell | -4.58% | N/A | -0.56% |
IDT | 2.32% | 42.95% | 6.77% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Cincinnati Bell and IDT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Cincinnati Bell | 0 | 2 | 0 | 0 | 2.00 |
IDT | 0 | 0 | 0 | 0 | N/A |
Cincinnati Bell currently has a consensus target price of $15.50, suggesting a potential upside of 1.44%. Given Cincinnati Bell's higher possible upside, analysts plainly believe Cincinnati Bell is more favorable than IDT.
Institutional & Insider Ownership
96.4% of Cincinnati Bell shares are owned by institutional investors. Comparatively, 37.9% of IDT shares are owned by institutional investors. 1.8% of Cincinnati Bell shares are owned by company insiders. Comparatively, 17.1% of IDT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Cincinnati Bell and IDT's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Cincinnati Bell | $1.54 billion | 0.50 | $-66,600,000.00 | ($1.13) | -13.52 |
IDT | $1.35 billion | 0.34 | $21.43 million | N/A | N/A |
IDT has lower revenue, but higher earnings than Cincinnati Bell.
Summary
IDT beats Cincinnati Bell on 7 of the 11 factors compared between the two stocks.