Zayo Group (ZAYO) and IDT (IDT) Financial Comparison

Zayo Group (NYSE:ZAYO) and IDT (NYSE:IDT) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Institutional & Insider Ownership

96.6% of Zayo Group shares are owned by institutional investors. Comparatively, 38.4% of IDT shares are owned by institutional investors. 4.5% of Zayo Group shares are owned by insiders. Comparatively, 22.5% of IDT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Zayo Group has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, IDT has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Dividends

IDT pays an annual dividend of $0.09 per share and has a dividend yield of 1.4%. Zayo Group does not pay a dividend.

Analyst Recommendations

This is a summary of recent ratings and target prices for Zayo Group and IDT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zayo Group 0 2 11 0 2.85
IDT 0 0 0 0 N/A

Zayo Group currently has a consensus price target of $35.95, indicating a potential upside of 12.20%. Given Zayo Group’s higher possible upside, research analysts clearly believe Zayo Group is more favorable than IDT.

Earnings & Valuation

This table compares Zayo Group and IDT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zayo Group $2.60 billion 2.89 $101.90 million $0.61 52.52
IDT $1.55 billion 0.11 $5.19 million N/A N/A

Zayo Group has higher revenue and earnings than IDT.

Profitability

This table compares Zayo Group and IDT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zayo Group 4.62% 8.29% 1.29%
IDT 0.23% 24.45% 2.26%

Summary

Zayo Group beats IDT on 9 of the 13 factors compared between the two stocks.

About Zayo Group

Zayo Group Holdings, Inc., through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States, Canada, and Europe. The company operates in six segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation (zColo), Allstream, and Other. The Fiber Solutions segment provides dark fiber, and fiber-to-the-tower and small cell mobile infrastructure services for carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies, large enterprises, and other companies. The Transport segment offers lit bandwidth infrastructure solutions comprising wavelength, Ethernet, wholesale IP services, and SONET services through its metro, regional, and long-haul fiber networks for carriers, content providers, financial services companies, healthcare, government entities, education institutions, and other medium and large enterprises. The Enterprise Networks segment provides connectivity and telecommunications solutions comprising Internet, wide area networking products, managed products, and cloud based computing and storage offerings to medium and large enterprises. The Zayo Colocation (zColo) segment offers data center infrastructure solutions consisting of colocation space, and power and interconnection services to a range of enterprise, carrier, cloud, and content customers. The Allstream segment provides cloud VoIP and data solutions, such as voice offerings; and unified communications, as well as telecommunications services, including Ethernet, and IP/MPLS VPN solutions. The Other segment provides network and technical resources to customers in designing, acquiring, and maintaining their networks. Zayo Group Holdings, Inc. was founded in 2007 and is headquartered in Boulder, Colorado.

About IDT

IDT Corporation operates primarily in the telecommunications and payment industries in the United States and internationally. The company operates in two segments, Telecom & Payment Services, and net2phone-Unified Communications as a Service. The Telecom & Payment Services Services segment offers retail telecommunication products, including international long-distance calling products primarily to foreign-born communities; wholesale international long distance traffic termination services for tier 1 fixed line and mobile network operators, as well as for other service providers; and payment offerings, such as international and domestic airtime top-up, domestic bill payment, and international money transfer services. The net2phone-Unified Communications as a Service segment provides voice over Internet protocol products and services under the net2phone brand name, including cloud-based private branch exchange (PBX) services to enterprise customers primarily through value-added resellers, service providers, telecom agents, and managed service providers; session initiation protocol trunking services, which support inbound and outbound domestic and international calling from an IP PBX; and cable telephony services. The company is also involved in the provision of offers local/long distance residential phone services under the brand name IDT America. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey.

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