Comparing Maxcom Telecomunic (OTCMKTS:MXMTY) & Cincinnati Bell (OTCMKTS:CBB)

Maxcom Telecomunic (OTCMKTS:MXMTY) and Cincinnati Bell (NYSE:CBB) are both small-cap utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Risk & Volatility

Maxcom Telecomunic has a beta of -1.74, meaning that its share price is 274% less volatile than the S&P 500. Comparatively, Cincinnati Bell has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares Maxcom Telecomunic and Cincinnati Bell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxcom Telecomunic -24.46% -38.45% -9.85%
Cincinnati Bell -6.05% N/A -2.35%

Earnings and Valuation

This table compares Maxcom Telecomunic and Cincinnati Bell’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Maxcom Telecomunic $68.52 million 0.24 -$14.60 million N/A N/A
Cincinnati Bell $1.38 billion 0.17 -$69.80 million ($1.11) -4.23

Maxcom Telecomunic has higher earnings, but lower revenue than Cincinnati Bell.

Analyst Recommendations

This is a summary of current recommendations for Maxcom Telecomunic and Cincinnati Bell, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxcom Telecomunic 0 0 0 0 N/A
Cincinnati Bell 0 1 1 0 2.50

Cincinnati Bell has a consensus price target of $11.50, indicating a potential upside of 144.68%. Given Cincinnati Bell’s higher possible upside, analysts clearly believe Cincinnati Bell is more favorable than Maxcom Telecomunic.

Insider and Institutional Ownership

95.0% of Cincinnati Bell shares are held by institutional investors. 2.4% of Cincinnati Bell shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cincinnati Bell beats Maxcom Telecomunic on 9 of the 11 factors compared between the two stocks.

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.

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.

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