Liberty Latin America (NASDAQ:LILA – Get Free Report) and Cogent Communications (NASDAQ:CCOI – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Earnings & Valuation
This table compares Liberty Latin America and Cogent Communications”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Latin America | $4.46 billion | 0.39 | -$657.00 million | ($3.69) | -2.36 |
| Cogent Communications | $987.53 million | 0.89 | -$204.07 million | ($4.08) | -4.38 |
Profitability
This table compares Liberty Latin America and Cogent Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Latin America | -16.57% | -54.11% | -5.95% |
| Cogent Communications | -21.57% | -117.56% | -6.78% |
Institutional & Insider Ownership
18.5% of Liberty Latin America shares are owned by institutional investors. Comparatively, 92.4% of Cogent Communications shares are owned by institutional investors. 11.4% of Liberty Latin America shares are owned by company insiders. Comparatively, 11.4% of Cogent Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Liberty Latin America has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Cogent Communications has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Liberty Latin America and Cogent Communications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Latin America | 2 | 0 | 1 | 0 | 1.67 |
| Cogent Communications | 1 | 7 | 1 | 0 | 2.00 |
Liberty Latin America currently has a consensus target price of $9.75, suggesting a potential upside of 12.07%. Cogent Communications has a consensus target price of $25.71, suggesting a potential upside of 43.74%. Given Cogent Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Cogent Communications is more favorable than Liberty Latin America.
Summary
Liberty Latin America beats Cogent Communications on 7 of the 13 factors compared between the two stocks.
About Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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.
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