TalkTalk Telecom Group (NYSE: BCE) and BCE (NYSE:BCE) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Risk & Volatility

TalkTalk Telecom Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, BCE has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Dividends

TalkTalk Telecom Group pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. BCE pays an annual dividend of $2.29 per share and has a dividend yield of 5.6%. BCE pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings for TalkTalk Telecom Group and BCE, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TalkTalk Telecom Group 1 1 1 0 2.00
BCE 0 3 4 0 2.57

BCE has a consensus price target of $57.00, suggesting a potential upside of 38.89%. Given BCE’s stronger consensus rating and higher possible upside, analysts plainly believe BCE is more favorable than TalkTalk Telecom Group.

Valuation & Earnings

This table compares TalkTalk Telecom Group and BCE’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TalkTalk Telecom Group $2.33 billion 1.02 $75.82 million N/A N/A
BCE $17.52 billion 2.10 $2.25 billion $2.62 15.66

BCE has higher revenue and earnings than TalkTalk Telecom Group.

Profitability

This table compares TalkTalk Telecom Group and BCE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TalkTalk Telecom Group N/A N/A N/A
BCE 12.00% 18.67% 5.37%

Institutional & Insider Ownership

42.8% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

BCE beats TalkTalk Telecom Group on 12 of the 14 factors compared between the two stocks.

TalkTalk Telecom Group Company Profile

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

BCE Company Profile

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers integrated digital wireless voice and data communications products and services. The Bell Wireline segment provides data, including Internet access, Internet protocol TV and telephony, local telephone, and long distance, as well as other communications services and products; and satellite TV and connectivity services. This segment also offers home security and monitoring services; competitive local exchange carrier services; business service solutions, such as hosting and cloud, managed, professional, and infrastructure services; virtual private networks, point-to-point data networks, and international network solutions; and Web and audio conferencing, and email solutions. The Bell Media segment offers conventional, specialty, and pay TV; and digital media, radio broadcasting, and out-of-home advertising services, as well as sports and other event production and broadcasting services. This segment owns and operates approximately 30 conventional TV stations; 34 specialty and 4 pay TV channels; 105 licensed radio stations; 31,000 advertising faces; and 200 Websites and approximately 30 apps. The company also distributes mobile products. BCE Inc. offers its services through a network of corporate and dealer-owned retail stores, national retailers, and call center representatives, as well as Websites and door-to-door sales representatives. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

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