Telefonica Brasil (NYSE:VIV – Get Free Report) and Uniti Group (NASDAQ:UNIT – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Risk and Volatility
Telefonica Brasil has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Uniti Group has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Telefonica Brasil and Uniti Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telefonica Brasil | 3 | 5 | 1 | 0 | 1.78 |
| Uniti Group | 0 | 7 | 1 | 1 | 2.33 |
Valuation and Earnings
This table compares Telefonica Brasil and Uniti Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telefonica Brasil | $10.67 billion | 1.81 | $1.10 billion | $0.78 | 15.20 |
| Uniti Group | $2.23 billion | 1.04 | $1.30 billion | $2.71 | 3.52 |
Uniti Group has lower revenue, but higher earnings than Telefonica Brasil. Uniti Group is trading at a lower price-to-earnings ratio than Telefonica Brasil, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
5.2% of Telefonica Brasil shares are owned by institutional investors. Comparatively, 87.5% of Uniti Group shares are owned by institutional investors. 1.9% of Uniti Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Telefonica Brasil and Uniti Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telefonica Brasil | 10.64% | 9.72% | 5.18% |
| Uniti Group | 28.68% | -133.07% | -4.09% |
Summary
Uniti Group beats Telefonica Brasil on 8 of the 14 factors compared between the two stocks.
About Telefonica Brasil
Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as mobile value-added and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.
About Uniti Group
Uniti Group, Inc. is a real estate investment trust company, which engages in the acquisition, construction, and leasing of properties. It operates through the following business segments: Uniti Leasing, Uniti Fiber, and Corporate. The Uniti Leasing segment involves mission-critical communications assets on exclusive or shared-tenant basis, and dark fiber network. The Uniti Fiber segment includes the operation of infrastructure solutions, cell site backhauls, and dark fiber. The Corporate segment consists of office and shared service functions. The company was founded in February 2014 and is headquartered in Little Rock, AR.
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