PLDT (PHI) vs. Its Peers Critical Contrast

PLDT (NYSE:PHI) is one of 203 public companies in the “Diversified Telecommunication Services” industry, but how does it contrast to its competitors? We will compare PLDT to related companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.

Insider & Institutional Ownership

2.3% of PLDT shares are owned by institutional investors. Comparatively, 32.5% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 0.7% of PLDT shares are owned by company insiders. Comparatively, 18.3% of shares of all “Diversified Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares PLDT and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PLDT	12.81%	26.76%	5.36%
PLDT Competitors	-11.85%	-217.35%	-3.33%

Risk and Volatility

PLDT has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, PLDT’s competitors have a beta of -4.90, indicating that their average stock price is 590% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for PLDT and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLDT	0	4	0	0	2.00
PLDT Competitors	1753	5343	7763	384	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 20.59%. Given PLDT’s competitors stronger consensus rating and higher possible upside, analysts clearly believe PLDT has less favorable growth aspects than its competitors.

Dividends

PLDT pays an annual dividend of $1.09 per share and has a dividend yield of 6.0%. PLDT pays out 49.1% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.6% and pay out 33.0% of their earnings in the form of a dividend. PLDT lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares PLDT and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PLDT	$3.80 billion	$498.72 million	8.18
PLDT Competitors	$24.18 billion	$893.66 million	-168.62

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

Summary

PLDT competitors beat PLDT on 10 of the 15 factors compared.

About PLDT

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.