Contrasting Cogent Communications (NASDAQ:CCOI) and KORE Group (NYSE:KORE)

Cogent Communications (NASDAQ:CCOI) and KORE Group (NYSE:KORE) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Volatility and Risk

Cogent Communications has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, KORE Group has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500.

Profitability

This table compares Cogent Communications and KORE Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cogent Communications	135.34%	-23.66%	-2.39%
KORE Group	-60.39%	-85.34%	-14.75%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cogent Communications and KORE Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cogent Communications	0	3	3	0	2.50
KORE Group	0	2	3	0	2.60

Cogent Communications presently has a consensus target price of $77.57, suggesting a potential upside of 22.99%. KORE Group has a consensus target price of $2.94, suggesting a potential upside of 261.27%. Given KORE Group’s stronger consensus rating and higher possible upside, analysts clearly believe KORE Group is more favorable than Cogent Communications.

Valuation & Earnings

This table compares Cogent Communications and KORE Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cogent Communications	$940.92 million	3.18	$1.27 billion	$26.75	2.36
KORE Group	$276.61 million	0.24	-$167.04 million	($1.93)	-0.42

Cogent Communications has higher revenue and earnings than KORE Group. KORE Group is trading at a lower price-to-earnings ratio than Cogent Communications, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.5% of Cogent Communications shares are owned by institutional investors. Comparatively, 57.5% of KORE Group shares are owned by institutional investors. 11.4% of Cogent Communications shares are owned by insiders. Comparatively, 0.8% of KORE Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Cogent Communications beats KORE Group on 10 of the 13 factors compared between the two stocks.

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.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company's products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.