Telecom Italia S.P.A. (NYSE: TI) and BCE (NYSE:BCE) are both large-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Telecom Italia S.P.A. and BCE, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Italia S.P.A. 0 3 2 0 2.40
BCE 0 4 4 0 2.50

BCE has a consensus price target of $57.25, indicating a potential upside of 20.45%. Given BCE’s stronger consensus rating and higher possible upside, analysts plainly believe BCE is more favorable than Telecom Italia S.P.A..

Risk and Volatility

Telecom Italia S.P.A. has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, BCE has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Dividends

BCE pays an annual dividend of $2.13 per share and has a dividend yield of 4.5%. Telecom Italia S.P.A. does not pay a dividend. BCE pays out 87.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Telecom Italia S.P.A. and BCE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telecom Italia S.P.A. N/A N/A N/A
BCE 12.85% 21.08% 5.78%

Insider & Institutional Ownership

0.8% of Telecom Italia S.P.A. shares are held by institutional investors. Comparatively, 44.4% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by company 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.

Valuation & Earnings

This table compares Telecom Italia S.P.A. and BCE’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Telecom Italia S.P.A. $23.17 billion 0.88 $9.99 billion N/A N/A
BCE $17.48 billion 2.45 $6.55 billion $2.44 19.48

Telecom Italia S.P.A. has higher revenue and earnings than BCE.

Summary

BCE beats Telecom Italia S.P.A. on 11 of the 15 factors compared between the two stocks.

Telecom Italia S.P.A. Company Profile

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

BCE Company Profile

BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.

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