Reviewing Telenor ASA (TELNY) and The Competition

Telenor ASA (OTCMKTS:TELNY) is one of 203 public companies in the “Diversified Telecommunication Services” industry, but how does it weigh in compared to its rivals? We will compare Telenor ASA to similar businesses based on the strength of its earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Analyst Ratings

This is a summary of current recommendations for Telenor ASA and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telenor ASA	2	2	0	4	2.75
Telenor ASA Competitors	1763	5374	7773	385	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 20.71%. Given Telenor ASA’s rivals higher probable upside, analysts plainly believe Telenor ASA has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Telenor ASA and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Telenor ASA	$7.38 billion	$678.08 million	9.39
Telenor ASA Competitors	$24.31 billion	$893.66 million	-169.25

Telenor ASA’s rivals have higher revenue and earnings than Telenor ASA. Telenor ASA is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Telenor ASA and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telenor ASA	26.85%	16.94%	5.86%
Telenor ASA Competitors	-10.40%	-215.25%	-3.43%

Risk & Volatility

Telenor ASA has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Telenor ASA’s rivals have a beta of -4.82, suggesting that their average share price is 582% less volatile than the S&P 500.

Dividends

Telenor ASA pays an annual dividend of $0.69 per share and has a dividend yield of 4.8%. Telenor ASA pays out 45.4% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.8% and pay out 33.2% of their earnings in the form of a dividend. Telenor ASA lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

32.8% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 18.3% of shares of all “Diversified Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Telenor ASA rivals beat Telenor ASA on 8 of the 15 factors compared.

Telenor ASA Company Profile

Telenor ASA is a Norwegian telecommunications company headquartered in Fornebu, Norway. Its roots date to 1855, when it was established as Norway’s state telegraph service; it later developed into a telecommunications provider and expanded internationally. The company provides mobile and fixed-line communications, broadband, television, and digital services to consumers and businesses. It also offers connectivity and related services for businesses, including Internet of Things solutions. Telenor’s operations focus primarily on the Nordic region and Bangladesh, where it operates through Grameenphone.