Tucows (TCX) and Its Competitors Financial Analysis

Tucows (NASDAQ:TCX) is one of 273 public companies in the “IT Services” industry, but how does it weigh in compared to its competitors? We will compare Tucows to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.

Profitability

This table compares Tucows and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tucows	-17.91%	N/A	-8.22%
Tucows Competitors	-190.54%	-32.69%	-8.39%

Earnings & Valuation

This table compares Tucows and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tucows	$390.30 million	-$75.82 million	-2.07
Tucows Competitors	$3.28 billion	$223.00 million	-30.74

Tucows’ competitors have higher revenue and earnings than Tucows. Tucows is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

73.6% of Tucows shares are held by institutional investors. Comparatively, 36.4% of shares of all “IT Services” companies are held by institutional investors. 8.4% of Tucows shares are held by company insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Tucows has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Tucows’ competitors have a beta of 2.16, suggesting that their average share price is 116% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Tucows and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tucows	1	0	0	0	1.00
Tucows Competitors	2009	5677	9501	343	2.47

As a group, “IT Services” companies have a potential upside of 23.41%. Given Tucows’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Tucows has less favorable growth aspects than its competitors.

Summary

Tucows competitors beat Tucows on 8 of the 12 factors compared.

Tucows Company Profile

Tucows Inc. (NASDAQ: TCX) is a technology company that provides internet services, domain name services and software solutions for communications providers. Its businesses have historically included domain registration and related services, consumer internet connectivity through Ting Internet, and telecommunications software offered under the Wavelo brand. Through its Domains business, Tucows provides domain registration, wholesale domain services, digital identity products and related tools for businesses, resellers and individual customers.