TELUS Corporation (NYSE: TU) and Telecom Argentina Stet – France Telecom (NYSE:TEO) are both mid-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares TELUS Corporation 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 Corporation 9.55% 18.75% 5.44%
Telecom Argentina Stet – France Telecom 9.99% 27.60% 12.02%

Valuation and Earnings

This table compares TELUS Corporation and Telecom Argentina Stet – France Telecom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TELUS Corporation $10.20 billion 2.08 $3.23 billion $1.58 22.61
Telecom Argentina Stet – France Telecom $3.30 billion 1.73 $893.47 million $1.93 15.28

TELUS Corporation has higher revenue and earnings than Telecom Argentina Stet – France Telecom. Telecom Argentina Stet – France Telecom is trading at a lower price-to-earnings ratio than TELUS Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

TELUS Corporation pays an annual dividend of $1.46 per share and has a dividend yield of 4.1%. Telecom Argentina Stet – France Telecom does not pay a dividend. TELUS Corporation pays out 92.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

TELUS Corporation has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for TELUS Corporation and Telecom Argentina Stet – France Telecom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TELUS Corporation 0 0 5 0 3.00
Telecom Argentina Stet – France Telecom 0 2 2 0 2.50

TELUS Corporation currently has a consensus target price of $45.00, indicating a potential upside of 25.94%. Telecom Argentina Stet – France Telecom has a consensus target price of $29.00, indicating a potential downside of 1.69%. Given TELUS Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TELUS Corporation is more favorable than Telecom Argentina Stet – France Telecom.

Institutional and Insider Ownership

52.7% of TELUS Corporation shares are owned by institutional investors. Comparatively, 6.0% of Telecom Argentina Stet – France Telecom shares are owned by institutional investors. 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 stock is poised for long-term growth.

Summary

TELUS Corporation beats Telecom Argentina Stet – France Telecom on 9 of the 16 factors compared between the two stocks.

TELUS Corporation Company Profile

TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.

Telecom Argentina Stet – France Telecom Company Profile

Telecom Argentina S.A. provides fixed-line telecommunications services in Argentina, and also provides other telephone-related services, such as international long-distance service, data transmission, information technology solutions outsourcing and Internet services. The Company’s segments include Fixed Telecommunications Services (Fixed Services), Personal Mobile Telecommunications Services (Personal Mobile Services) and Nucleo Mobile Telecommunications Services (Nucleo Mobile Services). The Company, through its subsidiaries, also provides mobile telecommunications services and international wholesale services. The Fixed services segment consists of basic telephone services, interconnection services, data transmission and Internet services, information and communication technology services, and other telephone services. The Company, through its subsidiaries, such as Telecom Personal S.A. and Nucleo S.A., provides mobile services in Argentina and Paraguay, respectively.

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