CenturyLink (CTL) and Telecom Italia S.P.A. (TI) Head-To-Head Analysis

CenturyLink (NYSE: CTL) and Telecom Italia S.P.A. (NYSE:TI) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Dividends

CenturyLink pays an annual dividend of $2.16 per share and has a dividend yield of 11.8%. Telecom Italia S.P.A. does not pay a dividend. CenturyLink pays out 313.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

CenturyLink has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Telecom Italia S.P.A. has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

83.0% of CenturyLink shares are owned by institutional investors. Comparatively, 0.8% of Telecom Italia S.P.A. shares are owned by institutional investors. 0.6% of CenturyLink shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CenturyLink and Telecom Italia S.P.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CenturyLink 2.20% 8.43% 2.36%
Telecom Italia S.P.A. N/A N/A N/A

Valuation & Earnings

This table compares CenturyLink and Telecom Italia S.P.A.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CenturyLink $16.97 billion 0.59 $6.06 billion $0.69 26.58
Telecom Italia S.P.A. $23.08 billion 0.87 $9.94 billion N/A N/A

Telecom Italia S.P.A. has higher revenue and earnings than CenturyLink.

Analyst Recommendations

This is a summary of current recommendations for CenturyLink and Telecom Italia S.P.A., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CenturyLink 3 6 4 0 2.08
Telecom Italia S.P.A. 0 4 2 0 2.33

CenturyLink presently has a consensus price target of $25.55, indicating a potential upside of 39.29%. Given CenturyLink’s higher possible upside, analysts clearly believe CenturyLink is more favorable than Telecom Italia S.P.A..

Summary

CenturyLink beats Telecom Italia S.P.A. on 8 of the 15 factors compared between the two stocks.

CenturyLink Company Profile

CenturyLink, Inc. is an integrated communications company. The Company is engaged in providing an array of communications services to its residential and business customers. Its segments include business, which provides strategic, legacy and data integration products and services to small, medium and enterprise business, wholesale and governmental customers, including other communication providers, and consumer, which provides strategic and legacy products and services to residential customers. Its communications services include local and long-distance voice, broadband, Multi-Protocol Label Switching (MPLS), private line (including special access), Ethernet, colocation, hosting (including cloud hosting and managed hosting), data integration, video, network, public access, Voice over Internet Protocol (VoIP), information technology and other ancillary services. As of December 31, 2016, it served approximately 5.9 million broadband subscribers and 325,000 Prism TV subscribers.

Telecom Italia S.P.A. Company Profile

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

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