Telecom Italia (NYSE: TI) and BT Group (NYSE:BT) are both large-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
BT Group pays an annual dividend of $0.95 per share and has a dividend yield of 5.7%. Telecom Italia does not pay a dividend. BT Group pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telecom Italia has increased its dividend for 5 consecutive years.
This is a breakdown of recent ratings and price targets for Telecom Italia and BT Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Telecom Italia currently has a consensus price target of $1.80, suggesting a potential downside of 78.49%. BT Group has a consensus price target of $333.33, suggesting a potential upside of 1,903.21%. Given BT Group’s higher possible upside, analysts plainly believe BT Group is more favorable than Telecom Italia.
Institutional and Insider Ownership
0.8% of Telecom Italia shares are held by institutional investors. Comparatively, 0.9% of BT Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Telecom Italia and BT Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Telecom Italia has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, BT Group has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Valuation & Earnings
This table compares Telecom Italia and BT Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Telecom Italia||$21.06 billion||0.84||$2.00 billion||N/A||N/A|
|BT Group||$31.47 billion||1.05||$2.49 billion||$1.04||16.00|
BT Group has higher revenue and earnings than Telecom Italia.
BT Group beats Telecom Italia on 11 of the 14 factors compared between the two stocks.
Telecom Italia Company Profile
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.
BT Group Company Profile
BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as managed networked information technology (IT) solutions and cyber security protection. Its segments include Consumer, which provides fixed-voice, broadband, TV and mobile services; EE, which is a mobile network operator in the United Kingdom and provides mobile and fixed communications services to consumers; Business and Public Sector, which provides communications and IT services to businesses and the public sector in the United Kingdom and the Republic of Ireland (RoI) ;Global Services, which provides managed networked IT services to corporate customers; Wholesale and Ventures, which provides fixed and mobile services to communications providers (CPs); and Openreach, which provides copper and fiber connections between its exchanges and homes and businesses.
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