Head to Head Comparison: PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) and Cogent Communications (NASDAQ:CCOI)

Cogent Communications (NASDAQ:CCOI) and PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Insider and Institutional Ownership

92.4% of Cogent Communications shares are owned by institutional investors. 4.2% of Cogent Communications shares are owned by company 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.

Analyst Recommendations

This is a breakdown of current recommendations for Cogent Communications and PT Telekomunikasi Indonesia, Tbk, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cogent Communications	2	6	3	0	2.09
PT Telekomunikasi Indonesia, Tbk	2	0	0	0	1.00

Cogent Communications currently has a consensus price target of $19.55, suggesting a potential upside of 116.98%. Given Cogent Communications’ stronger consensus rating and higher probable upside, research analysts clearly believe Cogent Communications is more favorable than PT Telekomunikasi Indonesia, Tbk.

Dividends

Cogent Communications pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. PT Telekomunikasi Indonesia, Tbk pays an annual dividend of $0.94 per share and has a dividend yield of 6.6%. Cogent Communications pays out -8.3% of its earnings in the form of a dividend. PT Telekomunikasi Indonesia, Tbk pays out 90.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cogent Communications has increased its dividend for 14 consecutive years.

Volatility & Risk

Cogent Communications has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, PT Telekomunikasi Indonesia, Tbk has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cogent Communications	$975.77 million	0.47	-$182.17 million	($0.96)	-9.39
PT Telekomunikasi Indonesia, Tbk	$8.80 billion	1.60	$1.05 billion	$1.04	13.64

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

Profitability

This table compares Cogent Communications and PT Telekomunikasi Indonesia, Tbk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cogent Communications	-4.73%	-842.48%	-4.86%
PT Telekomunikasi Indonesia, Tbk	11.62%	11.53%	5.86%

Summary

PT Telekomunikasi Indonesia, Tbk beats Cogent Communications on 9 of the 17 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 PT Telekomunikasi Indonesia, Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.