SES (OTCMKTS:SGBAF) & Telenor ASA (OTCMKTS:TELNY) Critical Contrast

Telenor ASA (OTCMKTS:TELNY) and SES (OTCMKTS:SGBAF) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Dividends

Telenor ASA pays an annual dividend of $0.69 per share and has a dividend yield of 4.8%. SES pays an annual dividend of $0.50 per share and has a dividend yield of 10.8%. Telenor ASA pays out 45.4% of its earnings in the form of a dividend. SES pays out -72.5% 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. SES is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Telenor ASA has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, SES has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Telenor ASA and SES, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telenor ASA	2	2	0	4	2.75
SES	1	2	1	0	2.00

Profitability

This table compares Telenor ASA and SES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telenor ASA	26.85%	16.94%	5.86%
SES	-8.96%	-9.43%	-1.93%

Earnings and Valuation

This table compares Telenor ASA and SES”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telenor ASA	$7.38 billion	2.64	$678.08 million	$1.52	9.38
SES	$2.97 billion	0.87	-$107.48 million	($0.69)	-6.70

Telenor ASA has higher revenue and earnings than SES. SES is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.

Summary

Telenor ASA beats SES on 10 of the 14 factors compared between the two stocks.

About Telenor ASA

Telenor ASA is a Norwegian telecommunications company headquartered in Fornebu, Norway. Its roots date to 1855, when it was established as Norway’s state telegraph service; it later developed into a telecommunications provider and expanded internationally. The company provides mobile and fixed-line communications, broadband, television, and digital services to consumers and businesses. It also offers connectivity and related services for businesses, including Internet of Things solutions. Telenor’s operations focus primarily on the Nordic region and Bangladesh, where it operates through Grameenphone.

About SES

SES is a satellite communications company headquartered in Betzdorf, Luxembourg. It provides connectivity and video distribution services to businesses, governments, broadcasters and other organizations around the world. The company operates satellites in geostationary and medium Earth orbits, including its O3b mPOWER system. Its services support applications such as television and media delivery, broadband connectivity, mobile communications, and network services for aviation, maritime and government customers.