TELE2 AB/ADR (OTCMKTS:TLTZY) and Telstra (OTCMKTS:TLSYY) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.
This is a summary of recent ratings and recommmendations for TELE2 AB/ADR and Telstra, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional and Insider Ownership
0.1% of Telstra shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares TELE2 AB/ADR and Telstra’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TELE2 AB/ADR||$2.94 billion||2.10||$49.85 million||$0.29||21.17|
|Telstra||$19.61 billion||1.40||$2.93 billion||$1.23||9.35|
Telstra has higher revenue and earnings than TELE2 AB/ADR. Telstra is trading at a lower price-to-earnings ratio than TELE2 AB/ADR, indicating that it is currently the more affordable of the two stocks.
TELE2 AB/ADR pays an annual dividend of $0.16 per share and has a dividend yield of 2.6%. Telstra pays an annual dividend of $0.76 per share and has a dividend yield of 6.6%. TELE2 AB/ADR pays out 55.2% of its earnings in the form of a dividend. Telstra pays out 61.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
TELE2 AB/ADR has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Telstra has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
This table compares TELE2 AB/ADR and Telstra’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TELE2 AB/ADR beats Telstra on 7 of the 13 factors compared between the two stocks.
TELE2 AB/ADR Company Profile
Tele2 AB (publ), a telecom operator, provides telecommunication services for residential and business customers. The company offers mobile voice telephony, handset data, messaging, and value-added services, such as handset insurance, antivirus, and content services; mobile broadband services; and fixed voice and broadband, TV, and fixed and mobile telephony services. It also provides business-to-business telecommunication services, such as secure and encrypted connections, company-specific mobile network access points, etc.; cloud services comprising voice switching, data center services, business productivity solutions, etc.; and data connectivity, Ethernet connectivity, VPN services, and international IP connectivity services, as well as IoT solutions. As of March 28, 2018, the company served approximately 17 million customers in 8 countries. It provides services in Sweden, Lithuania, Latvia, Estonia, Kazakhstan, Croatia, Germany, and internationally. Tele2 AB (publ) was founded in 1990 and is headquartered in Stockholm, Sweden.
Telstra Company Profile
Telstra Corporation Limited, together with its subsidiaries, provides telecommunications and information services to businesses, governments, communities, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Telstra Operations, and Telstra Wholesale. The company offers telecommunication products, services, and solutions across mobiles, fixed and mobile broadband, telephony and pay television/Internet protocol, and digital content; and online self-service capabilities, including buying, billing, and servicing requests, as well as operates inbound and outbound call centers, owned and licensed Telstra shops, and the Telstra dealership network. It also provides sales and contract management services for medium to large business and government customers; and product management services for advanced technology solutions and services, such as data and Internet protocol networks, and mobility applications and services, as well as network applications and services products comprising managed network, unified communications, cloud, industry solutions, and integrated services and monitoring. In addition, the company engages in the development of industry vertical solutions; planning, design, engineering architecture, and construction of Telstra networks, technology, and information technology solutions; and provision of a range of telecommunication products and services to other carriers, carriage service providers, and Internet service providers through its networks and related support systems. Further, it provides disconnection, media and marketing, and other services. The company was formerly known as Australian and Overseas Telecommunications Corporation Limited and changed its name to Telstra Corporation Limited in April 1993. Telstra Corporation Limited was founded in 1901 and is based in Melbourne, Australia.
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