TELIA Co A B/ADR (OTCMKTS: SPKKY) and Spark New Zealand (OTCMKTS:SPKKY) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for TELIA Co A B/ADR and Spark New Zealand, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TELIA Co A B/ADR 1 0 0 0 1.00
Spark New Zealand 0 0 0 0 N/A

Valuation and Earnings

This table compares TELIA Co A B/ADR and Spark New Zealand’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TELIA Co A B/ADR $9.36 billion 2.13 $1.13 billion $0.44 20.89
Spark New Zealand $2.57 billion 1.86 $297.78 million $0.81 16.10

TELIA Co A B/ADR has higher revenue and earnings than Spark New Zealand. Spark New Zealand is trading at a lower price-to-earnings ratio than TELIA Co A B/ADR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TELIA Co A B/ADR and Spark New Zealand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TELIA Co A B/ADR 2.75% 8.22% 3.31%
Spark New Zealand N/A N/A N/A

Risk & Volatility

TELIA Co A B/ADR has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Spark New Zealand has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of TELIA Co A B/ADR shares are held by institutional investors. Comparatively, 0.3% of Spark New Zealand shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

TELIA Co A B/ADR pays an annual dividend of $0.39 per share and has a dividend yield of 4.2%. Spark New Zealand pays an annual dividend of $0.64 per share and has a dividend yield of 4.9%. TELIA Co A B/ADR pays out 88.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Spark New Zealand pays out 79.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Spark New Zealand is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

TELIA Co A B/ADR beats Spark New Zealand on 7 of the 12 factors compared between the two stocks.

TELIA Co A B/ADR Company Profile

Telia Company AB (publ) provides network access, telecommunications, and other services primarily in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Mexico. It offers mobile, broadband, TV, and fixed-line services to businesses, individuals, families, and communities. The company also develops and maintains fiber and cable networks; and provides international carrier, cloud, identity and access rights management, ICT, smart public transport, and customer financing services, as well as IT equipment and services. In addition, it engages in the wholesale of IP transit, Ethernet, IPX, and cloud connect products for Internet service providers, and content and cloud providers. The company markets its products and services under the Telia, Call me, DLG Tele, Diil, Activ, Telia Cloudy, LMT, Okarte, Amigo, Ezys, Chess, OneCall, MyCall, OneCall, Phonero, and Halebop brands, as well as Cygate, DataInfo, Telia Finance, and Skanova brands. It has 16.7 million mobile subscriptions, 2.2 million fixed voice subscriptions, 2.5 million broadband subscriptions, and 1.7 million TV subscriptions. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is headquartered in Solna, Sweden.

Spark New Zealand Company Profile

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications, and information and communications technology (ICT) products and services primarily in New Zealand. The company's Spark Home, Mobile & Business segment offers a range of services and content, data, and voice services across fibre, wireless, copper broadband, mobile, online video entertainment, and nationwide Wi-Fi zones to consumers and small-medium business customers. Its Spark Digital segment integrates information technology (IT) and telecommunications services to provide converged ICT solutions. The company's Spark Connect & Platforms segment is involved in Spark New Zealand's network and IT operations, shared business operations, and digital and service transformation activities. Its Spark Ventures & Wholesale segment develops a portfolio of new businesses; and supervises wholesale products and services. The company also provides IT infrastructure, data center, business cloud, subscription video-on-demand, big data analytics, and outsourced telecommunications services; and retails telecommunications products and services. It has approximately 2.392 million mobile connections. The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. Spark New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.

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