Head-To-Head Contrast: j2 Global (JCOM) & Its Peers

j2 Global (NASDAQ: JCOM) is one of 45 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it compare to its peers? We will compare j2 Global to related businesses based on the strength of its profitability, valuation, earnings, analyst recommendations, institutional ownership, dividends and risk.

Risk & Volatility

j2 Global has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, j2 Global’s peers have a beta of 0.99, suggesting that their average stock price is 1% less volatile than the S&P 500.

Profitability

This table compares j2 Global and its peers’ 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 2.17% 3.44% 2.17%

Institutional & Insider Ownership

59.9% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 5.2% of j2 Global shares are owned by insiders. Comparatively, 5.3% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
j2 Global $874.26 million $152.43 million 26.73
j2 Global Competitors $16.60 billion $1.32 billion 201.82

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

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” companies pay a dividend yield of 4.5% and pay out 661.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for j2 Global and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
j2 Global 0 1 3 0 2.75
j2 Global Competitors 586 1684 2001 66 2.36

j2 Global presently has a consensus target price of $101.75, indicating a potential upside of 40.99%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 46.50%. Given j2 Global’s peers higher probable upside, analysts clearly believe j2 Global has less favorable growth aspects than its peers.

Summary

j2 Global peers beat j2 Global on 9 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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