Verizon Communications (VZ) versus Cincinnati Bell (CBB) Financial Comparison
Verizon Communications (NYSE: VZ) and Cincinnati Bell (NYSE:CBB) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Earnings & Valuation
This table compares Verizon Communications and Cincinnati Bell’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Verizon Communications||$123.64 billion||1.59||$46.55 billion||$3.90||12.36|
|Cincinnati Bell||$1.18 billion||0.76||$281.90 million||$1.65||12.94|
Verizon Communications has higher revenue and earnings than Cincinnati Bell. Verizon Communications is trading at a lower price-to-earnings ratio than Cincinnati Bell, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Verizon Communications and Cincinnati Bell, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Verizon Communications currently has a consensus price target of $52.87, suggesting a potential upside of 9.64%. Cincinnati Bell has a consensus price target of $23.50, suggesting a potential upside of 10.07%. Given Cincinnati Bell’s higher possible upside, analysts plainly believe Cincinnati Bell is more favorable than Verizon Communications.
Volatility & Risk
Verizon Communications has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Cincinnati Bell has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.
Institutional and Insider Ownership
62.4% of Verizon Communications shares are held by institutional investors. Comparatively, 82.4% of Cincinnati Bell shares are held by institutional investors. 0.1% of Verizon Communications shares are held by insiders. Comparatively, 1.4% of Cincinnati Bell shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Verizon Communications and Cincinnati Bell’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Verizon Communications pays an annual dividend of $2.31 per share and has a dividend yield of 4.8%. Cincinnati Bell does not pay a dividend. Verizon Communications pays out 59.2% of its earnings in the form of a dividend. Verizon Communications has raised its dividend for 10 consecutive years.
Verizon Communications beats Cincinnati Bell on 11 of the 17 factors compared between the two stocks.
About Verizon Communications
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video, data center and cloud services, security and managed network services, and local and long distance voice services. The Company has combined Yahoo! Inc.’s operating assets with its existing AOL Inc. business to create a new subsidiary, Oath Inc., owns a diverse house of more than 50 media and technology brands. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail.
About Cincinnati Bell
Cincinnati Bell Inc., along with its subsidiaries, provides diversified telecommunications and technology services. The Company operates through two segments: Entertainment and Communications, and IT Services and Hardware. Through its Entertainment and Communications segment, the Company provides high-speed data, video and voice solutions to consumers and businesses over fiber network and a legacy copper network. The IT Services and Hardware segments operates through its subsidiary, Cincinnati Bell Technology Solutions Inc. (CBTS), which is engaged in the sale and service of end-to-end communications and information technology (IT) systems and solutions for business customers across the United States. The Company has interest in CyrusOne Inc., which operates carrier-neutral data center colocation business.
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