Critical Contrast: Telefonica Brasil (NYSE:VIV) vs. Viper Networks (OTCMKTS:VPER)

Telefonica Brasil (NYSE:VIV) and Viper Networks (OTCMKTS:VPER) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

5.2% of Telefonica Brasil shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Telefonica Brasil and Viper Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefonica Brasil	10.49%	9.32%	5.04%
Viper Networks	-3.80%	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Telefonica Brasil and Viper Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefonica Brasil	4	5	2	0	1.82
Viper Networks	0	0	0	0	0.00

Telefonica Brasil currently has a consensus target price of $14.36, suggesting a potential upside of 8.75%. Given Telefonica Brasil’s stronger consensus rating and higher probable upside, equities analysts clearly believe Telefonica Brasil is more favorable than Viper Networks.

Risk and Volatility

Telefonica Brasil has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Viper Networks has a beta of -0.38, suggesting that its stock price is 138% less volatile than the S&P 500.

Earnings & Valuation

This table compares Telefonica Brasil and Viper Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefonica Brasil	$10.67 billion	2.01	$1.10 billion	$0.74	17.84
Viper Networks	$5.55 million	0.37	-$130,000.00	N/A	N/A

Telefonica Brasil has higher revenue and earnings than Viper Networks.

Summary

Telefonica Brasil beats Viper Networks on 11 of the 11 factors compared between the two stocks.

About Telefonica Brasil

Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as mobile value-added and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.

About Viper Networks

Viper Networks, Inc. manufactures and distributes LED lighting products. The company provides CyberGrab; Vnet, a communication application; Viper unified communications platform for carriers and providers; VRoom; parking lot lightings system; and solar power and telecom systems, as well as intelligent lighting solutions with camera, sensor, and wireless technologies. Its products are used in street, roadway, security, parking lot, and billboard lighting. Viper Networks, Inc. was incorporated in 2000 and is based in Troy, Michigan.