Comparing TeliaSonera (TLSNY) and Its Competitors

TeliaSonera (OTCMKTS:TLSNY) is one of 33 publicly-traded companies in the “Wireless Telecommunication Services” industry, but how does it compare to its peers? We will compare TeliaSonera to similar businesses based on the strength of its profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for TeliaSonera and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeliaSonera	1	2	0	1	2.25
TeliaSonera Competitors	320	912	1457	139	2.50

As a group, “Wireless Telecommunication Services” companies have a potential upside of 38.35%. Given TeliaSonera’s peers stronger consensus rating and higher possible upside, analysts plainly believe TeliaSonera has less favorable growth aspects than its peers.

Risk and Volatility

TeliaSonera has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, TeliaSonera’s peers have a beta of 1.98, suggesting that their average share price is 98% more volatile than the S&P 500.

Dividends

TeliaSonera pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. TeliaSonera pays out 71.4% of its earnings in the form of a dividend. As a group, “Wireless Telecommunication Services” companies pay a dividend yield of 3.1% and pay out 40.0% of their earnings in the form of a dividend. TeliaSonera lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares TeliaSonera and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeliaSonera	6.54%	9.82%	2.83%
TeliaSonera Competitors	59.09%	11.62%	4.34%

Insider & Institutional Ownership

48.6% of shares of all “Wireless Telecommunication Services” companies are owned by institutional investors. 23.2% of shares of all “Wireless Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares TeliaSonera and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TeliaSonera	$8.28 billion	$360.26 million	35.36
TeliaSonera Competitors	$658.84 billion	$2.68 billion	37.28

TeliaSonera’s peers have higher revenue and earnings than TeliaSonera. TeliaSonera is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

TeliaSonera peers beat TeliaSonera on 14 of the 15 factors compared.

About TeliaSonera

Telia Company AB (publ) provides communication services to businesses, individuals, families, and communities in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. It offers mobile, broadband, television, and fixed-line services; and networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, and colocation solutions. The company also provides IoT connectivity, building monitoring, smart public transport, and smart utilities, as well as transport and logistics solutions comprising connected vehicle, asset tracking, and fleet management services. It markets its products and services under the Telia, Telia Cygate, TV4, C More, Halebop, Fello, MTV, Phonero, Onecall, MyCall, CallMe, MIT Tele, Ezys, Diil, Super, and Imt brand names for transport and logistics, public transport, manufacturing, retail, utilities, buildings and real estate, and public sector industries. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is based in Solna, Sweden.