Contrasting TALKTALK TELECO/ADR (OTCMKTS:TKTCY) and BT Group (OTCMKTS:BTGOF)

BT Group (OTCMKTS:BTGOF) and TALKTALK TELECO/ADR (OTCMKTS:TKTCY) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Earnings and Valuation

This table compares BT Group and TALKTALK TELECO/ADR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BT Group	N/A	N/A	N/A	$0.24	10.41
TALKTALK TELECO/ADR	$1.99 billion	0.78	$194.52 million	$0.34	20.00

TALKTALK TELECO/ADR has higher revenue and earnings than BT Group. BT Group is trading at a lower price-to-earnings ratio than TALKTALK TELECO/ADR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BT Group and TALKTALK TELECO/ADR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BT Group	N/A	N/A	N/A
TALKTALK TELECO/ADR	N/A	N/A	N/A

Dividends

BT Group pays an annual dividend of $0.10 per share and has a dividend yield of 3.9%. TALKTALK TELECO/ADR pays an annual dividend of $0.11 per share and has a dividend yield of 1.6%. BT Group pays out 40.4% of its earnings in the form of a dividend. TALKTALK TELECO/ADR pays out 32.4% 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.

Institutional & Insider Ownership

38.1% of BT Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BT Group and TALKTALK TELECO/ADR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BT Group	2	1	1	0	1.75
TALKTALK TELECO/ADR	0	0	0	0	0.00

About BT Group

BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through Consumer, Enterprise, Global, and Openreach segments. The company builds, owns, and operates fixed and mobile networks; and designs, builds, markets, sells, and supports network access, connectivity, and related solutions. It also offers landline, mobile, and broadband services; home and cyber security solutions; and TV and cloud gaming entertainment services under the BT, EE, and Plusnet brands. In addition, the company provides connectivity, networking, cyber security, collaboration tools, cloud connectivity, and cloud services for small, medium, and large corporate businesses; public sector; and government. Further, it engages in the wholesale of mobile network capabilities, voice services, broadband, ethernet, and other connectivity solutions on contract basis; and offers access to its fixed access network infrastructure for homes, schools, hospitals, libraries, government buildings, and businesses. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.

About TALKTALK TELECO/ADR

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.