Reviewing PT XL Axiata Tbk (OTCMKTS:PTXKY) & Cogent Communications (NASDAQ:CCOI)

PT XL Axiata Tbk (OTCMKTS:PTXKY) and Cogent Communications (NASDAQ:CCOI) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Insider and Institutional Ownership

92.4% of Cogent Communications shares are held by institutional investors. 4.2% of Cogent Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares PT XL Axiata Tbk and Cogent Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT XL Axiata Tbk	N/A	N/A	N/A	N/A	N/A
Cogent Communications	$975.77 million	0.54	-$182.17 million	($0.96)	-10.68

PT XL Axiata Tbk has higher earnings, but lower revenue than Cogent Communications.

Analyst Recommendations

This is a breakdown of current recommendations for PT XL Axiata Tbk and Cogent Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT XL Axiata Tbk	0	1	0	0	2.00
Cogent Communications	1	7	3	0	2.18

Cogent Communications has a consensus price target of $23.10, suggesting a potential upside of 125.37%. Given Cogent Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Cogent Communications is more favorable than PT XL Axiata Tbk.

Profitability

This table compares PT XL Axiata Tbk and Cogent Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT XL Axiata Tbk	N/A	N/A	N/A
Cogent Communications	-4.73%	-842.48%	-4.86%

Summary

Cogent Communications beats PT XL Axiata Tbk on 6 of the 9 factors compared between the two stocks.

About PT XL Axiata Tbk

PT XL Axiata Tbk, together with its subsidiaries, provides telecommunication, telecommunications network, and multimedia services for consumers and businesses in Indonesia. The company provides cellular mobile and closed fixed network, Internet, Internet telephony and interconnection, data communication system, packet switched local fixed network, telephony, and voice over Internet protocol services. It also offers digital content and home broadband services; voice and short message services; data and digital; mobile communication and telecommunication services; and other telecommunication services, includes SIM card sales, leased line, and tower. The company was formerly known as PT Excelcomindo Pratama Tbk. and changed its name to PT XL Axiata Tbk in 2009. PT XL Axiata Tbk was founded in 1989 and is headquartered in Jakarta Selatan, Indonesia. PT XL Axiata Tbk is a subsidiary of Axiata Investments (Indonesia) Sdn. Bhd.

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.