Head-To-Head Contrast: Globe Telecom (OTCMKTS:GTMEY) & TELUS (NYSE:TU)

TELUS (NYSE:TU) and Globe Telecom (OTCMKTS:GTMEY) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

TELUS pays an annual dividend of $1.21 per share and has a dividend yield of 12.2%. Globe Telecom pays an annual dividend of $35.44 per share and has a dividend yield of 153.3%. TELUS pays out -295.1% of its earnings in the form of a dividend. Globe Telecom pays out 39.5% 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. TELUS has increased its dividend for 5 consecutive years.

Institutional & Insider Ownership

49.4% of TELUS shares are held by institutional investors. Comparatively, 0.1% of Globe Telecom shares are held by institutional investors. 0.1% of TELUS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TELUS and Globe Telecom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS	4	9	3	0	1.94
Globe Telecom	0	0	0	0	0.00

TELUS currently has a consensus target price of $15.33, indicating a potential upside of 55.04%. Given TELUS’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TELUS is more favorable than Globe Telecom.

Profitability

This table compares TELUS and Globe Telecom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS	-4.51%	8.01%	2.21%
Globe Telecom	N/A	N/A	N/A

Valuation & Earnings

This table compares TELUS and Globe Telecom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS	$14.71 billion	1.06	$796.57 million	($0.41)	-24.12
Globe Telecom	N/A	N/A	N/A	$89.75	0.26

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

Summary

TELUS beats Globe Telecom on 10 of the 14 factors compared between the two stocks.

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.

About Globe Telecom

Globe Telecom, Inc. provides telecommunications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients in the Philippines. It operates through Mobile Communications Services and Wireline Communication Services segments. The company offers digital wireless communications services under the Globe Postpaid and Prepaid, and Touch Mobile brands; long distance communication or carrier services; broadband, as well as wireline voice and data communication services; and electronic payment and remittance services under the GCash brand. It provides value-added services, such as inbound and outbound short messaging, content downloading, mobile commerce, and other add-on services. The company also provides human capital management, business process, shared service support, Information technology and electronic, software development, IT system integration and consultancy, and advertising services. In addition, it offers marketing and distribution; data management; data center management; capital investment funds management; warehouse and logistics services; and support and shared services, as well as specific solutions for various industries. The company was incorporated in 1935 and is based in Taguig, the Philippines.