United States Cellular (NYSE:USM – Get Free Report) and Cogent Communications (NASDAQ:CCOI – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
18.0% of United States Cellular shares are held by institutional investors. Comparatively, 92.5% of Cogent Communications shares are held by institutional investors. 1.0% of United States Cellular shares are held by company insiders. Comparatively, 10.2% of Cogent Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for United States Cellular and Cogent Communications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United States Cellular | 0 | 0 | 3 | 0 | 3.00 |
| Cogent Communications | 1 | 3 | 3 | 0 | 2.29 |
Profitability
This table compares United States Cellular and Cogent Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United States Cellular | -0.68% | 1.68% | 0.74% |
| Cogent Communications | -21.57% | -117.56% | -6.78% |
Risk & Volatility
United States Cellular has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Cogent Communications has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Valuation & Earnings
This table compares United States Cellular and Cogent Communications”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United States Cellular | $3.71 billion | 1.78 | -$39.00 million | ($0.30) | -259.60 |
| Cogent Communications | $1.04 billion | 1.75 | -$204.07 million | ($4.54) | -8.13 |
United States Cellular has higher revenue and earnings than Cogent Communications. United States Cellular 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
United States Cellular beats Cogent Communications on 8 of the 13 factors compared between the two stocks.
About United States Cellular
United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers, as well as wireless essentials, including cases, screen protectors, chargers, and memory cards; and consumer electronics comprising audio, home automation, and networking products. In addition, it sells wireless devices to agents and other third-party distributors for resale; and offers option for customers to purchase devices and accessories under installment contracts. Further, the company offers wireless roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers. The company provides its products and services through retail sales, direct sales, telesales, ecommerce, resellers, and independent agents, as well as third-party national retailers. United States Cellular Corporation was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.
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.
Receive News & Ratings for United States Cellular Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United States Cellular and related companies with MarketBeat.com's FREE daily email newsletter.
