Proximus (OTCMKTS:BGAOY) and Cogeco Communications (OTCMKTS:CGEAF) Head to Head Survey

Cogeco Communications (OTCMKTS:CGEAF) and Proximus (OTCMKTS:BGAOY) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Dividends

Cogeco Communications pays an annual dividend of $1.25 per share and has a dividend yield of 2.4%. Proximus pays an annual dividend of $0.07 per share and has a dividend yield of 4.1%. Cogeco Communications pays out 28.4% of its earnings in the form of a dividend. Proximus pays out 15.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Proximus is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

41.9% of Cogeco Communications shares are owned by institutional investors. Comparatively, 0.0% of Proximus shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cogeco Communications and Proximus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cogeco Communications	N/A	N/A	N/A
Proximus	N/A	N/A	N/A

Earnings and Valuation

This table compares Cogeco Communications and Proximus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cogeco Communications	N/A	N/A	N/A	$4.40	11.91
Proximus	N/A	N/A	N/A	$0.44	3.84

Proximus is trading at a lower price-to-earnings ratio than Cogeco Communications, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cogeco Communications and Proximus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cogeco Communications	0	4	1	0	2.20
Proximus	0	0	0	1	4.00

About Cogeco Communications

Cogeco Communications Inc. operates as a telecommunications corporation in Canada and the United States. It operates in two segments, Canadian Telecommunications and American Telecommunications. The company offers Internet, video, and Internet protocol (IP) based telephony services to residential and small business customers through its two-way broadband fiber networks. It also provides Internet packages comprising best-in-class managed Wi-Fi and with home Wi-Fi solutions; voice services; and other advanced network connectivity services, such as dedicated fibre, session initiation protocol (SIP) or primary rate interface (PRI) trunking solutions, hosted private branch exchange (HPBX) solutions, and managed business Wi-Fi (MBW) through its long-distance fibre optic systems, advanced hybrid fibre-coaxial (HFC) telecommunications distribution networks, point-to-point fibre networks, and fibre-to-the-home (FTTH) network technologies. In addition, the company offers e-mail solutions and Internet security suite to Internet customers with automatic updates to protect their desktop and mobile devices; and self-installation devices on a rental basis. Further, it provides cable operator services under the Cogeco Connexion name in Québec and Ontario, Canada; and in the United States under the Breezeline brand. The company was formerly known as Cogeco Cable Inc. and changed its name to Cogeco Communications Inc. in January 2016. Cogeco Communications Inc. was founded in 1957 and is headquartered in Montreal, Canada. Cogeco Communications Inc. operates as a subsidiary of Cogeco Inc.

About Proximus

Proximus PLC provides digital services and communication solutions in Belgium and internationally. It operates through Domestic, International Carrier Services, and TeleSign segments. The company offers fixed and mobile telephony, internet, and television services to residential customers and small businesses, and ICT services to residential, business, and telecom wholesale markets. It also provides managed and platform, integrating networking, cloud, cybersecurity, business application, and data and artificial intelligence services. In addition, the company offers international delivery authentication and digital identity services to internet brands, digital champions, and cloud native businesses. It offers its products and services under Proximus, Scarlet, Mobile Vikings, Tango, Telindus, and Telindus Netherlands brands. The company was formerly known as Belgacom SA and changed its name to Proximus PLC in June 2015. The company was founded in 1930 and is headquartered in Brussels, Belgium.