Freenet (OTCMKTS:FRTAF) & Tele2 (OTCMKTS:TLTZY) Financial Comparison

Tele2 (OTCMKTS:TLTZY) and Freenet (OTCMKTS:FRTAF) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Tele2 and Freenet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tele2	0	3	2	1	2.67
Freenet	0	2	1	1	2.75

Profitability

This table compares Tele2 and Freenet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tele2	33.96%	43.42%	15.54%
Freenet	10.04%	17.88%	7.85%

Risk and Volatility

Tele2 has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Freenet has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500.

Valuation & Earnings

This table compares Tele2 and Freenet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tele2	$3.06 billion	4.03	$468.79 million	$0.78	11.46
Freenet	$2.76 billion	1.16	$306.95 million	$2.56	10.55

Tele2 has higher revenue and earnings than Freenet. Freenet is trading at a lower price-to-earnings ratio than Tele2, indicating that it is currently the more affordable of the two stocks.

Summary

Tele2 beats Freenet on 9 of the 11 factors compared between the two stocks.

About Tele2

Tele2 AB (publ) provides fixed and mobile connectivity, handset related data services, and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. The company also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, it offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. The company was incorporated in 1990 and is headquartered in Kista, Sweden.

About Freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.