Contrasting Telefónica (OTCMKTS:TEFOF) & iQSTEL (NASDAQ:IQST)

iQSTEL (NASDAQ:IQST) and Telefónica (OTCMKTS:TEFOF) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Valuation & Earnings

This table compares iQSTEL and Telefónica”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iQSTEL	$316.90 million	0.02	-$9.16 million	($2.68)	-0.44
Telefónica	N/A	N/A	N/A	$0.96	4.38

Telefónica has lower revenue, but higher earnings than iQSTEL. iQSTEL is trading at a lower price-to-earnings ratio than Telefónica, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

20.0% of Telefónica shares are owned by institutional investors. 0.2% of iQSTEL shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares iQSTEL and Telefónica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iQSTEL	-2.62%	-45.89%	-14.84%
Telefónica	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for iQSTEL and Telefónica, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iQSTEL	1	1	1	0	2.00
Telefónica	0	0	0	0	0.00

iQSTEL presently has a consensus target price of $18.00, suggesting a potential upside of 1,438.46%. Given iQSTEL’s stronger consensus rating and higher possible upside, analysts clearly believe iQSTEL is more favorable than Telefónica.

Summary

Telefónica beats iQSTEL on 6 of the 11 factors compared between the two stocks.

About iQSTEL

iQSTEL Inc., through its subsidiary, Etelix.com USA, LLC, provides telecom and technology solutions. It provides international long-distance voice services (ILD wholesale) for telecommunications operator; and submarine fiber optic network capacity for internet, such as 4G and 5G. The company offers voice over IP connectivity, short messages service (SMS), and international and domestic SMS termination services. It also provides infrastructure connectivity, Cloud-PBX, OmniChannel marketing, Internet of Things services, and blockchain and payment solutions. iQSTEL Inc. serves wholesale carrier, government, corporate, enterprise, and small and medium companies in North America, Latin America, and Europe. The company was formerly known as PureSnax International, Inc. and changed its name to iQSTEL Inc. in August 2018. iQSTEL Inc. was incorporated in 2011 and is based in Coral Gables, Florida.

About Telefónica

Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, such as mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. It also provides fixed telecommunication services, including PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services, as well as leases and sells handset equipment and telephony information services. It also provides Internet and broadband multimedia services comprising internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, security, internet through fibre to the home, and voice over internet protocol services. In addition, the company offers leased line, virtual private network, fibre optics, web hosting and application, managed hosting, content delivery, outsourcing and application, desktop, and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud, advertising, big data, and digital experience services; Aura; open gateway, living apps; smart Wi-Fi, Phoenix, NT, Solar 360, and Movistar Home devices. Telefónica, S.A. was incorporated in 1924 and is headquartered in Madrid, Spain.