Cincinnati Bell (NYSE:CBB) and Spirent Communications (OTCMKTS:SPMYY) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
This table compares Cincinnati Bell and Spirent Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
94.4% of Cincinnati Bell shares are owned by institutional investors. 2.4% of Cincinnati Bell shares are owned by insiders. Comparatively, 1.0% of Spirent Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Cincinnati Bell has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Spirent Communications has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Cincinnati Bell and Spirent Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cincinnati Bell currently has a consensus price target of $14.33, indicating a potential upside of 44.34%. Given Cincinnati Bell’s higher probable upside, equities analysts plainly believe Cincinnati Bell is more favorable than Spirent Communications.
Earnings and Valuation
This table compares Cincinnati Bell and Spirent Communications’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cincinnati Bell||$1.38 billion||0.36||-$69.80 million||($1.11)||-8.95|
|Spirent Communications||$476.90 million||N/A||$55.80 million||$0.43||17.67|
Spirent Communications has lower revenue, but higher earnings than Cincinnati Bell. Cincinnati Bell is trading at a lower price-to-earnings ratio than Spirent Communications, indicating that it is currently the more affordable of the two stocks.
Spirent Communications pays an annual dividend of $0.19 per share and has a dividend yield of 2.5%. Cincinnati Bell does not pay a dividend. Spirent Communications pays out 44.2% of its earnings in the form of a dividend.
Cincinnati Bell beats Spirent Communications on 7 of the 13 factors compared between the two stocks.
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.
About Spirent Communications
Spirent Communications plc provides solutions to develop devices and equipment and to operate networks worldwide. The company operates through three segments: Networks & Security, Lifecycle Service Assurance, and Connected Devices. The Networks & Security segment develops performance and security test systems to accelerate the development of new devices, networks, and applications for high-speed Ethernet/IP, mobile, and global satellite navigation systems. The Lifecycle Service Assurance segment develops active test and analytics solutions for service turn-up, network performance improvement, and customer experience management. The Connected Devices develops automated test systems; and offers services to test new devices in the lab or on networks. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.
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