j2 Global (JCOM) & Its Rivals Critical Survey

j2 Global (NASDAQ: JCOM) is one of 7 public companies in the “Integrated Telecommunications Services – NEC” industry, but how does it contrast to its rivals? We will compare j2 Global to similar businesses based on the strength of its institutional ownership, analyst recommendations, earnings, profitability, dividends, risk and valuation.

Volatility & Risk

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 rivals have a beta of 1.19, indicating that their average stock price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

25.7% of shares of all “Integrated Telecommunications Services – NEC” companies are owned by institutional investors. 5.2% of j2 Global shares are owned by company insiders. Comparatively, 1.0% of shares of all “Integrated Telecommunications Services – NEC” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares j2 Global and its rivals’ 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 4.12% 3.33% 2.64%

Dividends

j2 Global pays an annual dividend of $1.54 per share and has a dividend yield of 2.1%. j2 Global pays out 57.0% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services – NEC” companies pay a dividend yield of 2.9% and pay out 6,150.0% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for j2 Global and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
j2 Global 0 1 3 0 2.75
j2 Global Competitors 139 324 452 10 2.36

j2 Global presently has a consensus price target of $101.75, indicating a potential upside of 37.87%. As a group, “Integrated Telecommunications Services – NEC” companies have a potential upside of 34.28%. Given j2 Global’s stronger consensus rating and higher probable upside, analysts clearly believe j2 Global is more favorable than its rivals.

Valuation and Earnings

This table compares j2 Global and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
j2 Global $874.26 million $152.43 million 27.33
j2 Global Competitors $5.96 billion $360.74 million 225.76

j2 Global’s rivals have higher revenue and earnings than j2 Global. j2 Global is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

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

j2 Global Company Profile

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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