Frontier Communications Corporation (NASDAQ: FTR) and Telecom Italia S.P.A. (NYSE:TI) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 16.1%. Telecom Italia S.P.A. does not pay a dividend. Frontier Communications Corporation pays out -16.6% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for Frontier Communications Corporation and Telecom Italia S.P.A., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Frontier Communications Corporation||2||9||2||0||2.00|
|Telecom Italia S.P.A.||0||3||2||0||2.40|
Frontier Communications Corporation presently has a consensus price target of $6.01, indicating a potential downside of 59.66%. Given Frontier Communications Corporation’s higher probable upside, equities research analysts plainly believe Frontier Communications Corporation is more favorable than Telecom Italia S.P.A..
Earnings & Valuation
This table compares Frontier Communications Corporation and Telecom Italia S.P.A.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Frontier Communications Corporation||$9.59 billion||0.12||$3.74 billion||($14.42)||-1.03|
|Telecom Italia S.P.A.||$23.27 billion||0.90||$10.08 billion||N/A||N/A|
Telecom Italia S.P.A. has higher revenue and earnings than Frontier Communications Corporation.
This table compares Frontier Communications Corporation and Telecom Italia S.P.A.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Frontier Communications Corporation||-9.35%||-1.28%||-0.19%|
|Telecom Italia S.P.A.||N/A||N/A||N/A|
Volatility & Risk
Frontier Communications Corporation has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Telecom Italia S.P.A. has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Insider and Institutional Ownership
0.8% of Telecom Italia S.P.A. shares are owned by institutional investors. 0.9% of Frontier Communications Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Telecom Italia S.P.A. beats Frontier Communications Corporation on 9 of the 13 factors compared between the two stocks.
About Frontier Communications Corporation
Frontier Communications Corporation (Frontier) is a provider of communications services in the United States. The Company offers a portfolio of communications services for residential and business customers. Its products and services include data and Internet services, video services, voice services, access services and customer premise equipment (CPE). The Company offers a range of broadband services. The principal residential service it provides is broadband Internet service. Its commercial services include Ethernet, Dedicated Internet, Multiprotocol Label Switching (MPLS), Time Division Multiplexing (TDM) data transport services and optical transport services. It also offers wireless broadband services (using unlicensed spectrum) in various markets utilizing networks that it owns or operates. In addition, the Company offers its Frontier Secure suite of products, including computer security, cloud backup and sharing, identity protection and equipment insurance.
About Telecom Italia S.P.A.
Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.
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