Deutsche Telekom (DTEGY) and The Competition Financial Analysis

Deutsche Telekom (OTCMKTS:DTEGY) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it weigh in compared to its rivals? We will compare Deutsche Telekom to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of current ratings for Deutsche Telekom and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Telekom	0	4	2	0	2.33
Deutsche Telekom Competitors	1759	5364	7770	386	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 22.10%. Given Deutsche Telekom’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Deutsche Telekom has less favorable growth aspects than its rivals.

Profitability

This table compares Deutsche Telekom and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Telekom	7.32%	11.58%	3.61%
Deutsche Telekom Competitors	-9.80%	-221.19%	-3.40%

Insider & Institutional Ownership

33.0% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 19.2% of shares of all “Diversified Telecommunication Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Deutsche Telekom and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Deutsche Telekom	$134.70 billion	$10.87 billion	13.42
Deutsche Telekom Competitors	$24.27 billion	$893.66 million	-167.54

Deutsche Telekom has higher revenue and earnings than its rivals. Deutsche Telekom is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Deutsche Telekom has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Deutsche Telekom’s rivals have a beta of -4.90, suggesting that their average share price is 590% less volatile than the S&P 500.

Summary

Deutsche Telekom beats its rivals on 7 of the 13 factors compared.

About Deutsche Telekom

Deutsche Telekom is a telecommunications and technology company headquartered in Bonn, Germany. Established in 1995 following the privatization of Germany’s state-owned postal and telecommunications services, it provides mobile and fixed-line communications, broadband internet, television, and digital services. The company serves consumers and businesses in Germany and other European markets, and has a major presence in the United States through T-Mobile US. Its offerings include mobile voice and data plans, fiber and other fixed-network connections, and information technology and communications solutions for business customers.