Financial Review: Telecom Argentina Stet – France Telecom (TEO) and Its Rivals

Telecom Argentina Stet – France Telecom (NYSE:TEO) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it compare to its peers? We will compare Telecom Argentina Stet – France Telecom to related companies based on the strength of its risk, institutional ownership, valuation, earnings, dividends, profitability and analyst recommendations.

Profitability

This table compares Telecom Argentina Stet – France Telecom and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Argentina Stet – France Telecom	7.61%	9.38%	4.11%
Telecom Argentina Stet – France Telecom Competitors	-11.87%	-217.43%	-3.33%

Institutional and Insider Ownership

32.6% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 1.0% of Telecom Argentina Stet – France Telecom shares are owned by insiders. Comparatively, 18.3% of shares of all “Diversified Telecommunication Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Telecom Argentina Stet – France Telecom and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Telecom Argentina Stet – France Telecom	$8,926.69 billion	-$136.01 million	8.10
Telecom Argentina Stet – France Telecom Competitors	$1,920.87 billion	$893.66 million	-168.48

Telecom Argentina Stet – France Telecom has higher revenue, but lower earnings than its peers. Telecom Argentina Stet – France Telecom is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and price targets for Telecom Argentina Stet – France Telecom and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Argentina Stet – France Telecom	1	2	4	0	2.43
Telecom Argentina Stet – France Telecom Competitors	1754	5350	7764	384	2.44

Telecom Argentina Stet – France Telecom currently has a consensus price target of $15.93, indicating a potential upside of 59.81%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 24.11%. Given Telecom Argentina Stet – France Telecom’s higher probable upside, analysts clearly believe Telecom Argentina Stet – France Telecom is more favorable than its peers.

Volatility and Risk

Telecom Argentina Stet – France Telecom has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom’s peers have a beta of -4.82, meaning that their average stock price is 582% less volatile than the S&P 500.

Summary

Telecom Argentina Stet – France Telecom beats its peers on 8 of the 13 factors compared.

About Telecom Argentina Stet – France Telecom

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services. The company offers mobile telecommunications services, including voice communications, high-speed mobile Internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, Modems MiFi and wingles, and smart watches. It also internet connectivity products, including virtual private network services, traditional Internet protocol links, and other products; and programming and other cable television services. In addition, the company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it provides Infrastructure, interconnection, datacenter, Internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric Internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service; and management and administration services. The company was formerly known as Cablevisión 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.