Liberty Global (NASDAQ:LILAK – Get Free Report) and Telecom Argentina Stet – France Telecom (NYSE:TEO – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of current ratings for Liberty Global and Telecom Argentina Stet – France Telecom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Global | 1 | 2 | 0 | 0 | 1.67 |
| Telecom Argentina Stet – France Telecom | 1 | 2 | 3 | 0 | 2.33 |
Liberty Global currently has a consensus price target of $8.10, suggesting a potential downside of 3.46%. Telecom Argentina Stet – France Telecom has a consensus price target of $15.55, suggesting a potential upside of 12.31%. Given Telecom Argentina Stet – France Telecom’s stronger consensus rating and higher probable upside, analysts plainly believe Telecom Argentina Stet – France Telecom is more favorable than Liberty Global.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Global | $4.44 billion | 0.38 | -$611.20 million | ($0.49) | -17.12 |
| Telecom Argentina Stet – France Telecom | $8,880.40 billion | 0.00 | -$136.01 million | $1.23 | 11.26 |
Telecom Argentina Stet – France Telecom has higher revenue and earnings than Liberty Global. Liberty Global is trading at a lower price-to-earnings ratio than Telecom Argentina Stet – France Telecom, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Liberty Global and Telecom Argentina Stet – France Telecom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Global | -2.20% | -8.50% | -0.82% |
| Telecom Argentina Stet – France Telecom | 3.33% | 4.05% | 1.74% |
Volatility & Risk
Liberty Global has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Insider & Institutional Ownership
53.0% of Liberty Global shares are held by institutional investors. 9.7% of Liberty Global shares are held by company insiders. Comparatively, 1.0% of Telecom Argentina Stet – France Telecom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Telecom Argentina Stet – France Telecom beats Liberty Global on 11 of the 14 factors compared between the two stocks.
About Liberty Global
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
About Telecom Argentina Stet – France Telecom
Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services. The company offers mobile telecommunications services, including voice communications, high-speed mobile Internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, Modems MiFi and wingles, and smart watches. It also internet connectivity products, including virtual private network services, traditional Internet protocol links, and other products; and programming and other cable television services. In addition, the company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it provides Infrastructure, interconnection, datacenter, Internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric Internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service; and management and administration services. The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018. Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.
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