Telecom Argentina Stet – France Telecom (NYSE:TEO) versus PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) Financial Contrast

PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) and Telecom Argentina Stet – France Telecom (NYSE:TEO) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares PT Telekomunikasi Indonesia, Tbk and Telecom Argentina Stet – France Telecom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Telekomunikasi Indonesia, Tbk	10.88%	10.91%	5.46%
Telecom Argentina Stet – France Telecom	7.61%	9.38%	4.11%

Volatility and Risk

PT Telekomunikasi Indonesia, Tbk has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Valuation and Earnings

This table compares PT Telekomunikasi Indonesia, Tbk and Telecom Argentina Stet – France Telecom”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Telekomunikasi Indonesia, Tbk	$8.80 billion	1.17	$1.05 billion	$1.04	10.00
Telecom Argentina Stet – France Telecom	$6.81 billion	0.66	-$136.01 million	$1.23	8.43

PT Telekomunikasi Indonesia, Tbk has higher revenue and earnings than Telecom Argentina Stet – France Telecom. Telecom Argentina Stet – France Telecom is trading at a lower price-to-earnings ratio than PT Telekomunikasi Indonesia, Tbk, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for PT Telekomunikasi Indonesia, Tbk and Telecom Argentina Stet – France Telecom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Telekomunikasi Indonesia, Tbk	1	1	0	0	1.50
Telecom Argentina Stet – France Telecom	1	2	4	0	2.43

Telecom Argentina Stet – France Telecom has a consensus target price of $15.93, suggesting a potential upside of 53.57%. Given Telecom Argentina Stet – France Telecom’s stronger consensus rating and higher probable upside, analysts clearly believe Telecom Argentina Stet – France Telecom is more favorable than PT Telekomunikasi Indonesia, Tbk.

Summary

PT Telekomunikasi Indonesia, Tbk beats Telecom Argentina Stet – France Telecom on 7 of the 12 factors compared between the two stocks.

About PT Telekomunikasi Indonesia, Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.

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.