Zayo Group (ZAYO) vs. Its Peers Head to Head Review

Zayo Group (NYSE: ZAYO) is one of 73 publicly-traded companies in the “Telephone communication, except radio” industry, but how does it contrast to its competitors? We will compare Zayo Group to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, earnings, valuation and profitability.

Risk and Volatility

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Zayo Group has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Zayo Group’s competitors have a beta of 0.59, meaning that their average stock price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Zayo Group and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zayo Group 0 4 14 0 2.78
Zayo Group Competitors 608 1866 1946 98 2.34

Zayo Group presently has a consensus target price of $41.91, suggesting a potential upside of 12.69%. As a group, “Telephone communication, except radio” companies have a potential upside of 67.68%. Given Zayo Group’s competitors higher possible upside, analysts plainly believe Zayo Group has less favorable growth aspects than its competitors.


This table compares Zayo Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zayo Group 3.42% 10.19% 1.67%
Zayo Group Competitors -12.56% -11.21% -0.99%

Valuation and Earnings

This table compares Zayo Group and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zayo Group $2.20 billion $85.70 million 92.98
Zayo Group Competitors $17.40 billion $2.02 billion 17.84

Zayo Group’s competitors have higher revenue and earnings than Zayo Group. Zayo Group 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.

Institutional & Insider Ownership

87.3% of Zayo Group shares are held by institutional investors. Comparatively, 46.9% of shares of all “Telephone communication, except radio” companies are held by institutional investors. 5.2% of Zayo Group shares are held by insiders. Comparatively, 7.3% of shares of all “Telephone communication, except radio” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.


Zayo Group beats its competitors on 7 of the 13 factors compared.

Zayo Group Company Profile

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, 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 communication solutions, such as Ethernet, enterprise private and connectivity services, managed services, and cloud based compute and storage products to medium and large enterprises. The Zayo Colocation (zColo) segment offers data center infrastructure solutions, including colocation space, and power and interconnection services to a range of enterprise, carrier, cloud, and content customers. The Allstream segment provides Internet protocol (IP), Internet, voice, IP trunking, cloud private branch exchange, and collaboration services, as well as unified communications for small and medium business customers. 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.

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