Cogent Communications (NASDAQ:CCOI) and Global Eagle Entertainment (OTCMKTS:GEENQ) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings for Cogent Communications and Global Eagle Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Cogent Communications | 0 | 3 | 3 | 0 | 2.50 |
| Global Eagle Entertainment | 0 | 0 | 0 | 0 | N/A |
Cogent Communications presently has a consensus price target of $79.7143, indicating a potential upside of 15.41%. Given Cogent Communications' higher probable upside, research analysts plainly believe Cogent Communications is more favorable than Global Eagle Entertainment.
Institutional & Insider Ownership
81.8% of Cogent Communications shares are owned by institutional investors. Comparatively, 7.4% of Global Eagle Entertainment shares are owned by institutional investors. 10.7% of Cogent Communications shares are owned by company insiders. Comparatively, 12.1% of Global Eagle Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Cogent Communications has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Global Eagle Entertainment has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.
Profitability
This table compares Cogent Communications and Global Eagle Entertainment's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Cogent Communications | 3.60% | -17.36% | 4.16% |
| Global Eagle Entertainment | -38.63% | N/A | -33.93% |
Valuation and Earnings
This table compares Cogent Communications and Global Eagle Entertainment's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Cogent Communications | $546.16 million | 6.02 | $37.52 million | $0.76 | 90.88 |
| Global Eagle Entertainment | $656.88 million | 0.00 | $-153,440,000.00 | ($41.50) | -0.01 |
Cogent Communications has higher earnings, but lower revenue than Global Eagle Entertainment. Global Eagle Entertainment is trading at a lower price-to-earnings ratio than Cogent Communications, indicating that it is currently the more affordable of the two stocks.
Summary
Cogent Communications beats Global Eagle Entertainment on 9 of the 13 factors compared between the two stocks.
