Head to Head Contrast: Telefonica (TEF) versus LICT (LICT)

Telefonica (NYSE:TEF) and LICT (OTCMKTS:LICT) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Dividends

Telefonica pays an annual dividend of $0.36 per share and has a dividend yield of 4.3%. LICT does not pay a dividend. Telefonica pays out 42.9% of its earnings in the form of a dividend.

Volatility & Risk

Telefonica has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, LICT has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Institutional and Insider Ownership

0.8% of Telefonica shares are owned by institutional investors. Comparatively, 1.4% of LICT shares are owned by institutional investors. 0.0% of Telefonica shares are owned by company insiders. Comparatively, 26.1% of LICT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Telefonica and LICT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telefonica 7.25% 16.65% 3.77%
LICT 24.02% N/A N/A

Earnings and Valuation

This table compares Telefonica and LICT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telefonica $58.75 billion 0.73 $3.54 billion $0.84 9.89
LICT $106.53 million 2.92 $20.63 million N/A N/A

Telefonica has higher revenue and earnings than LICT.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Telefonica and LICT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonica 2 1 5 0 2.38
LICT 0 0 0 0 N/A

Summary

Telefonica beats LICT on 7 of the 13 factors compared between the two stocks.

About Telefonica

Telefónica, S.A. provides mobile and fixed communication services primarily in the European Union and Latin America. The company's mobile and related services and products comprise mobile voice, value added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary and business oriented value-added; video telephony; intelligent network; and telephony information services. The company also leases and sells handset equipment, as well as provides Internet and broadband multimedia services comprising Internet service provider; portal and network; retail and wholesale broadband access; narrowband switched access to Internet; high-speed Internet services through fiber to the home; and voice over Internet protocol services. In addition, it offers data and business-solutions services that include leased lines; virtual private network; fiber optics; hosting and application; outsourcing and consultancy; desktop; and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection; international wholesale; leased lines for other operators' network deployment; and local loop leasing under the unbundled local loop regulation framework, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Additionally, it provides Internet protocol television (TV), over-the-top network TV, cable and satellite TV, and pay TV services; M2M connectivity platforms; and financial and other payment, security, cloud computing, advertising, big data, and digital telco experience services. The company was founded in 1924 and is based in Madrid, Spain.

About LICT

LICT Corporation, together with its subsidiaries, provides broadband and voice services to residential, commercial, and governmental customers. It offers high speed broadband services, including Internet access through copper-based digital subscriber lines (DSL), fiber optic facilities, fixed wireless, and cable modems; video services through traditional cable television services and Internet protocol television services; voice over Internet protocol; wireless communications; and other related services. The company operates in California, Illinois, Iowa, Kansas, Michigan, Nevada, New Hampshire, New Mexico, Oregon, Utah, and Wisconsin. As of December 31, 2016, it had a total of 33,029 voice lines, including access and competitive local exchange carrier (CLEC); and 4,206 miles of fiber optic cable, 11,430 miles of copper cable, and 513 miles of coaxial cable. The company was formerly known as Lynch Interactive Corporation and changed its name to LICT Corporation in March 2007. LICT Corporation was incorporated in 1996 and is based in Rye, New York.

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