TELUS (NYSE:TU – Get Free Report) and Telecom Argentina Stet – France Telecom (NYSE:TEO – Get Free Report) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Risk and Volatility
TELUS has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Earnings and Valuation
This table compares TELUS and Telecom Argentina Stet – France Telecom”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TELUS | $20.21 billion | 0.70 | $796.57 million | ($0.94) | -9.48 |
| Telecom Argentina Stet – France Telecom | $8,926.69 billion | 0.00 | -$136.01 million | $1.23 | 8.36 |
TELUS has higher earnings, but lower revenue than Telecom Argentina Stet – France Telecom. TELUS is trading at a lower price-to-earnings ratio than Telecom Argentina Stet – France Telecom, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
49.4% of TELUS shares are owned by institutional investors. 0.1% of TELUS shares are owned by insiders. Comparatively, 1.0% of Telecom Argentina Stet – France Telecom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for TELUS and Telecom Argentina Stet – France Telecom, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TELUS | 5 | 9 | 3 | 0 | 1.88 |
| Telecom Argentina Stet – France Telecom | 1 | 2 | 4 | 0 | 2.43 |
TELUS presently has a consensus price target of $15.00, indicating a potential upside of 68.26%. Telecom Argentina Stet – France Telecom has a consensus price target of $15.93, indicating a potential upside of 54.91%. Given TELUS’s higher probable upside, research analysts plainly believe TELUS is more favorable than Telecom Argentina Stet – France Telecom.
Profitability
This table compares TELUS and Telecom Argentina Stet – France Telecom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TELUS | -10.27% | 7.47% | 2.00% |
| Telecom Argentina Stet – France Telecom | 7.61% | 9.38% | 4.11% |
Summary
Telecom Argentina Stet – France Telecom beats TELUS on 10 of the 14 factors compared between the two stocks.
About TELUS
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.
About Telecom Argentina Stet – France Telecom
Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services. The company offers mobile telecommunications services, including voice communications, high-speed mobile Internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, Modems MiFi and wingles, and smart watches. It also internet connectivity products, including virtual private network services, traditional Internet protocol links, and other products; and programming and other cable television services. In addition, the company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it provides Infrastructure, interconnection, datacenter, Internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric Internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service; and management and administration 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.
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