Analyzing Zayo Group (ZAYO) and TELIA Co A B/ADR (TLSNY)
Zayo Group (OTCMKTS: TLSNY) and TELIA Co A B/ADR (OTCMKTS:TLSNY) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Insider and Institutional Ownership
94.7% of Zayo Group shares are owned by institutional investors. Comparatively, 0.1% of TELIA Co A B/ADR shares are owned by institutional investors. 5.2% of Zayo Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Zayo Group has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, TELIA Co A B/ADR has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
This table compares Zayo Group and TELIA Co A B/ADR’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%|
Earnings and Valuation
This table compares Zayo Group and TELIA Co A B/ADR’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zayo Group||$2.60 billion||3.33||$101.90 million||$0.61||57.66|
|TELIA Co A B/ADR||$9.36 billion||2.11||$1.13 billion||$0.44||20.75|
TELIA Co A B/ADR has higher revenue and earnings than Zayo Group. TELIA Co A B/ADR is trading at a lower price-to-earnings ratio than Zayo Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Zayo Group and TELIA Co A B/ADR, 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|
Zayo Group currently has a consensus target price of $43.00, indicating a potential upside of 22.26%. Given Zayo Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Zayo Group is more favorable than TELIA Co A B/ADR.
TELIA Co A B/ADR pays an annual dividend of $0.39 per share and has a dividend yield of 4.3%. Zayo Group does not pay a dividend. 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.
Zayo Group beats TELIA Co A B/ADR on 11 of the 16 factors compared between the two stocks.
About Zayo Group
Zayo Group Holdings, Inc., through its subsidiaries, provides bandwidth infrastructure solutions for the communications industry in the United States, Canada, and Europe. The company operates in six segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation (zColo), Allstream, and Other. The Fiber Solutions segment provides dark fiber, and fiber-to-the-tower and small cell mobile infrastructure services for carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies, large enterprises, and other companies. The Transport segment offers lit bandwidth infrastructure solutions comprising wavelength, Ethernet, wholesale IP services, and SONET services through its metro, regional, and long-haul fiber networks for carriers, content providers, financial services companies, healthcare, government entities, education institutions, and other medium and large enterprises. The Enterprise Networks segment provides connectivity and telecommunications solutions comprising Internet, wide area networking products, managed products, and cloud based computing and storage offerings to medium and large enterprises. The Zayo Colocation (zColo) segment offers data center infrastructure solutions consisting of colocation space, and power and interconnection services to a range of enterprise, carrier, cloud, and content customers. The Allstream segment provides cloud VoIP and data solutions, such as voice offerings; and unified communications, as well as telecommunications services, including Ethernet, and IP/MPLS VPN solutions. The Other segment provides network and technical resources to customers in designing, acquiring, and maintaining their networks. Zayo Group Holdings, Inc. was founded in 2007 and is headquartered in Boulder, Colorado.
About TELIA Co A B/ADR
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.
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