Critical Survey: OI (OIBRQ) and Its Competitors

Insider and Institutional Ownership

32.7% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 19.3% of shares of all “Diversified Telecommunication Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

OI has a beta of -16.94, indicating that its stock price is 1,794% less volatile than the S&P 500. Comparatively, OI’s peers have a beta of -4.78, indicating that their average stock price is 578% less volatile than the S&P 500.

Profitability

This table compares OI and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OI	N/A	N/A	N/A
OI Competitors	-12.22%	-229.18%	-3.14%

Earnings and Valuation

This table compares OI and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
OI	$1.94 billion	-$1.58 billion	-0.00
OI Competitors	$1,837.49 billion	$976.35 million	-188.73

OI’s peers have higher revenue and earnings than OI. OI is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

OI peers beat OI on 5 of the 9 factors compared.

About OI

Oi S.A., together with its subsidiaries, provides telecommunication services in Brazil and internationally. The company offers fixed telephony services; domestic and international long-distance services; and maintenance and repair services. It also provides call center and telemarketing, Internet, network, and Wi-Fi Internet services; and financial, and payment and credit system services, as well as consulting services. In addition, it engages in the investment management activities. The company was formerly known as Brasil Telecom S.A. and changed its name to Oi S.A. in February 2012. Oi S.A. was founded in 1998 and is headquartered in Rio de Janeiro, Brazil.