Critical Comparison: M3-Brigade Acquisition II (NYSE:MBAC) vs. Cogent Communications (NASDAQ:CCOI)

Cogent Communications (NASDAQ:CCOIGet Rating) and M3-Brigade Acquisition II (NYSE:MBACGet Rating) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares Cogent Communications and M3-Brigade Acquisition II’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cogent Communications 7.44% -9.43% 3.74%
M3-Brigade Acquisition II N/A -79.10% 6.28%

Insider and Institutional Ownership

86.8% of Cogent Communications shares are owned by institutional investors. Comparatively, 74.6% of M3-Brigade Acquisition II shares are owned by institutional investors. 11.0% of Cogent Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cogent Communications and M3-Brigade Acquisition II, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cogent Communications 2 0 2 0 2.00
M3-Brigade Acquisition II 0 0 0 0 N/A

Cogent Communications currently has a consensus target price of $68.33, suggesting a potential upside of 28.76%. Given Cogent Communications’ higher probable upside, analysts plainly believe Cogent Communications is more favorable than M3-Brigade Acquisition II.

Earnings and Valuation

This table compares Cogent Communications and M3-Brigade Acquisition II’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cogent Communications $589.80 million 4.32 $48.19 million $0.93 57.07
M3-Brigade Acquisition II N/A N/A -$1.99 million N/A N/A

Cogent Communications has higher revenue and earnings than M3-Brigade Acquisition II.

Volatility & Risk

Cogent Communications has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, M3-Brigade Acquisition II has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500.

Summary

Cogent Communications beats M3-Brigade Acquisition II on 9 of the 10 factors compared between the two stocks.

About Cogent Communications

(Get Rating)

Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, 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. The company operates 54 data centers and provides facilities to 3,035 buildings and on-net services to 1,817 to multi-tenant office buildings. 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.

About M3-Brigade Acquisition II

(Get Rating)

M3-Brigade Acquisition II Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more businesses. M3-Brigade Acquisition II Corp. was incorporated in 2020 and is based in New York, New York.

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