Critical Review: Telecom Argentina (NYSE:TEO) versus SINGAPORE TELEC/S (NYSE:SGAPY)

Telecom Argentina (NYSE:TEO) and SINGAPORE TELEC/S (OTCMKTS:SGAPY) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

6.6% of Telecom Argentina shares are owned by institutional investors. Comparatively, 0.1% of SINGAPORE TELEC/S shares are owned by institutional investors. 1.0% of Telecom Argentina shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Telecom Argentina and SINGAPORE TELEC/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telecom Argentina -2.24% -2.12% -1.19%
SINGAPORE TELEC/S 17.83% 9.58% 5.87%

Earnings and Valuation

This table compares Telecom Argentina and SINGAPORE TELEC/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telecom Argentina $4.53 billion 0.76 $187.94 million $0.34 52.32
SINGAPORE TELEC/S $12.79 billion 3.29 $2.28 billion N/A N/A

SINGAPORE TELEC/S has higher revenue and earnings than Telecom Argentina.

Volatility & Risk

Telecom Argentina has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, SINGAPORE TELEC/S has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Dividends

Telecom Argentina pays an annual dividend of $0.33 per share and has a dividend yield of 1.9%. SINGAPORE TELEC/S pays an annual dividend of $0.96 per share and has a dividend yield of 3.7%. Telecom Argentina pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telecom Argentina has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Telecom Argentina and SINGAPORE TELEC/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Argentina 0 2 0 0 2.00
SINGAPORE TELEC/S 0 0 0 0 N/A

Summary

SINGAPORE TELEC/S beats Telecom Argentina on 9 of the 13 factors compared between the two stocks.

About Telecom Argentina

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services in Argentina and internationally. The company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; interconnection services, such as access, termination, and long-distance transport of calls; information and communication technology services comprising datacenter services, and telecommunications consulting and value-added solutions; and call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services, as well as sells equipment. It also provides mobile telecommunications services that include voice communications, high-speed mobile Internet content and applications download, mobile multimedia, short message, online streaming, corporate email, social network access, and other services; and sells mobile communication devices that include handsets, Modems mifi and wingles, smart watches under the Personal brand. In addition, the company offers data transmission and Internet services comprising broadband, Internet dedicated lines, private networks, national and international video streaming, transportation of radio and TV signals, and video conferencing services; and programming and other cable television services. The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018. Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.

About SINGAPORE TELEC/S

Singapore Telecommunications Limited provides a portfolio of communication and technology, and infotainment services to consumers and businesses in Asia, Australia, and Africa. It operates through three segments: Group Consumer, Group Enterprise, and Group Digital Life. The Group Consumer segment engages in the carriage business, including mobile, pay TV, fixed broadband, and voice, as well as equipment sales. The Group Enterprise segment offers mobile, equipment sales, fixed voice and data, managed, cloud computing, cyber security, and IT and professional consulting services. The Group Digital Life segment is involved in the digital marketing, regional OTT video, and advanced analytics and intelligence businesses. The company also operates a venture capital fund that focuses its investments on technologies and solutions; and offers ICT solutions and marketing technology services. In addition, it offers inSing.com that provides hyper-local content, user reviews, and editorials, as well as business or service information; and Trustwave that enables businesses fight cybercrime, protect data, and reduce security risk. The company is headquartered in Singapore.

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