Financial Comparison: Zayo Group (ZAYO) vs. Its Competitors

Zayo Group (NYSE: ZAYO) is one of 73 publicly-traded companies in the “Telephone communication, except radio” industry, but how does it weigh in compared to its rivals? We will compare Zayo Group to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Analyst Ratings

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This is a summary of current ratings and recommmendations for Zayo Group and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zayo Group 0 5 13 0 2.72
Zayo Group Competitors 607 1860 1942 98 2.34

Zayo Group currently has a consensus target price of $41.90, suggesting a potential upside of 16.36%. As a group, “Telephone communication, except radio” companies have a potential upside of 71.79%. Given Zayo Group’s rivals higher probable upside, analysts clearly believe Zayo Group has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Zayo Group and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zayo Group $2.20 billion $85.70 million 90.03
Zayo Group Competitors $17.41 billion $2.01 billion 17.73

Zayo Group’s rivals have higher revenue and earnings than Zayo Group. Zayo Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Zayo Group has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Zayo Group’s rivals have a beta of 0.59, indicating that their average share price is 41% less volatile than the S&P 500.

Profitability

This table compares Zayo Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zayo Group 3.42% 10.19% 1.67%
Zayo Group Competitors -12.39% -11.08% -0.96%

Insider & Institutional Ownership

87.3% of Zayo Group shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Telephone communication, except radio” companies are owned by institutional investors. 5.2% of Zayo Group shares are owned by company insiders. Comparatively, 7.4% of shares of all “Telephone communication, except radio” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Zayo Group beats its rivals on 7 of the 13 factors compared.

About Zayo Group

Zayo Group Holdings, Inc., through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States, Canada, and Europe. The company operates in six segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation (zColo), Allstream, and Other. The Fiber Solutions segment provides dark fiber, and fiber-to-the-tower and small cell mobile infrastructure services for carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies, large enterprises, and other companies. The Transport segment offers lit bandwidth infrastructure solutions comprising wavelength, wholesale IP services, and SONET services through its metro, regional, and long-haul fiber networks for carriers, content providers, financial services companies, healthcare, government entities, education institutions, and other medium and large enterprises. The Enterprise Networks segment provides communication solutions, such as Ethernet, enterprise private and connectivity services, managed services, and cloud based compute and storage products to medium and large enterprises. The Zayo Colocation (zColo) segment offers data center infrastructure solutions, including colocation space, and power and interconnection services to a range of enterprise, carrier, cloud, and content customers. The Allstream segment provides Internet protocol (IP), Internet, voice, IP trunking, cloud private branch exchange, and collaboration services, as well as unified communications for small and medium business customers. The Other segment provides network and technical resources to customers in designing, acquiring, and maintaining their networks. Zayo Group Holdings, Inc. was founded in 2007 and is headquartered in Boulder, Colorado.

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