Contrasting Orange (ORAN) and j2 Global (JCOM)

Orange (NYSE: ORAN) and j2 Global (NASDAQ:JCOM) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

1.2% of Orange shares are held by institutional investors. 5.2% of j2 Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Orange and j2 Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orange N/A N/A N/A
j2 Global 12.60% 26.43% 11.11%

Earnings and Valuation

This table compares Orange and j2 Global’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Orange $45.29 billion 0.98 $3.25 billion N/A N/A
j2 Global $874.26 million 4.09 $152.43 million $2.70 27.33

Orange has higher revenue and earnings than j2 Global.

Dividends

Orange pays an annual dividend of $0.43 per share and has a dividend yield of 2.6%. 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.

Volatility and Risk

Orange has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, j2 Global has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Orange and j2 Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orange 2 0 2 0 2.00
j2 Global 0 1 3 0 2.75

j2 Global has a consensus target price of $101.75, indicating a potential upside of 37.87%. Given j2 Global’s stronger consensus rating and higher possible upside, analysts clearly believe j2 Global is more favorable than Orange.

Summary

j2 Global beats Orange on 9 of the 14 factors compared between the two stocks.

About Orange

Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.

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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