Telecom Argentina (NYSE:TEO) vs. PCCW (NYSE:PCCWY) Head to Head Survey

Telecom Argentina (NYSE:TEO) and PCCW (OTCMKTS:PCCWY) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Profitability

This table compares Telecom Argentina and PCCW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telecom Argentina -1.88% -1.32% -0.73%
PCCW N/A N/A N/A

Institutional and Insider Ownership

3.7% of Telecom Argentina shares are held by institutional investors. Comparatively, 0.0% of PCCW shares are held by institutional investors. 1.0% of Telecom Argentina shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Telecom Argentina and PCCW, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Argentina 2 1 0 0 1.33
PCCW 0 0 0 0 N/A

Telecom Argentina presently has a consensus price target of $11.00, indicating a potential upside of 20.35%. Given Telecom Argentina’s higher probable upside, analysts clearly believe Telecom Argentina is more favorable than PCCW.

Valuation & Earnings

This table compares Telecom Argentina and PCCW’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telecom Argentina $4.00 billion 0.98 -$91.00 million ($0.17) -53.76
PCCW $4.79 billion 0.90 $86.92 million N/A N/A

PCCW has higher revenue and earnings than Telecom Argentina.

Risk and Volatility

Telecom Argentina has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, PCCW has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Dividends

Telecom Argentina pays an annual dividend of $0.92 per share and has a dividend yield of 10.1%. PCCW pays an annual dividend of $0.55 per share and has a dividend yield of 9.8%. Telecom Argentina pays out -541.2% of its earnings in the form of a dividend. Telecom Argentina has increased its dividend for 3 consecutive years. Telecom Argentina is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Telecom Argentina beats PCCW on 8 of the 13 factors compared between the two stocks.

Telecom Argentina Company Profile

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services in Argentina and internationally. The company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; interconnection services, such as access, termination, and long-distance transport of calls; information and communication technology services comprising datacenter services, and telecommunications consulting and value-added solutions; and call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services, as well as sells equipment. It also provides mobile telecommunications services that include voice communications, high-speed mobile Internet content and applications download, mobile multimedia, short message, online streaming, corporate email, social network access, and other services; and sells mobile communication devices that include handsets, Modems mifi and wingles, smart watches under the Personal brand. In addition, the company offers data transmission and Internet services comprising broadband, Internet dedicated lines, private networks, national and international video streaming, transportation of radio and TV signals, and video conferencing services; and programming and other cable television services. The company was formerly known as CablevisiĆ³n 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.

PCCW Company Profile

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland China, Macau, Taiwan, China, and internationally. The company's services include local telephony, local data and broadband, mobile and international telecommunications, and satellite-based and network-based telecommunications services; and outsourcing, consulting, and contact center services. It also provides technical support, electronics communications engineering, and products and solutions, as well as free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; and sells mobile handsets and accessories. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, content for various media, and outsourced call center and data center services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products; supply of broadband Internet access solutions and Web services; provision of data services; and software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; property investment, development, management, and leasing, as well as hotel management activities; and ski operations. Additionally, the company offers entertainment over-the-top platform; multi-platform digital music services; and digital, IT and business process outsourcing, cloud computing, hosting, managed, e-commerce, and IoT solutions. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.

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