j2 Global (NASDAQ: JCOM) is one of 47 public companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its competitors? We will compare j2 Global to similar businesses based on the strength of its profitability, earnings, dividends, risk, institutional ownership, valuation and analyst recommendations.

Risk and Volatility

j2 Global has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, j2 Global’s competitors have a beta of 0.34, indicating that their average stock price is 66% less volatile than the S&P 500.

Earnings & Valuation

This table compares j2 Global and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
j2 Global $874.26 million $152.43 million 28.00
j2 Global Competitors $16.24 billion $1.19 billion 4.53

j2 Global’s competitors have higher revenue and earnings than j2 Global. j2 Global 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for j2 Global and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
j2 Global 0 1 3 0 2.75
j2 Global Competitors 587 1695 2005 66 2.36

j2 Global presently has a consensus target price of $101.75, indicating a potential upside of 34.61%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 50.20%. Given j2 Global’s competitors higher possible upside, analysts clearly believe j2 Global has less favorable growth aspects than its competitors.

Dividends

j2 Global pays an annual dividend of $1.58 per share and has a dividend yield of 2.1%. j2 Global pays out 58.5% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.4% and pay out 628.8% of their earnings in the form of a dividend.

Insider & Institutional Ownership

59.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 5.2% of j2 Global shares are held by insiders. Comparatively, 5.3% of shares of all “Integrated Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares j2 Global and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
j2 Global 12.60% 26.43% 11.11%
j2 Global Competitors 1.17% -3.61% 1.62%

Summary

j2 Global beats its competitors on 8 of the 15 factors compared.

About j2 Global

j2 Global, Inc. is a provider of services delivered through the Internet. The Company provides cloud services to businesses of all sizes, from individuals to enterprises. The Company operates in two segments: Business Cloud Services and Digital Media. The Company’s Digital Media business segment consists of the Web properties and business operations of Ziff Davis, Inc. (Ziff Davis). The Company’s cloud services and solutions include fax, voice and unified communications, email and customer relationship management, online backup, global network and operations, and customer support services. In February 2013, it acquired IGN Entertainment, Inc. On November 9, 2012, the Company acquired Ziff Davis. Effective March 18, 2013, it acquired MetroFax Inc. In April 2013, the Company acquired Backup Connect BV.

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