Telecom Italia S.P.A. (NYSE: TI) and BCE (NYSE:BCE) are both large-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Volatility & Risk
Telecom Italia S.P.A. has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, BCE has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.
Institutional & Insider Ownership
0.8% of Telecom Italia S.P.A. shares are owned by institutional investors. Comparatively, 43.0% of BCE shares are owned by institutional investors. 0.2% of BCE shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Telecom Italia S.P.A. and BCE’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Telecom Italia S.P.A.||$23.08 billion||0.86||$9.94 billion||N/A||N/A|
|BCE||$17.50 billion||2.46||$6.56 billion||$2.44||19.64|
Telecom Italia S.P.A. has higher revenue and earnings than BCE.
BCE pays an annual dividend of $2.13 per share and has a dividend yield of 4.4%. Telecom Italia S.P.A. does not pay a dividend. BCE pays out 87.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Telecom Italia S.P.A. and BCE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telecom Italia S.P.A.||N/A||N/A||N/A|
This is a breakdown of current recommendations for Telecom Italia S.P.A. and BCE, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telecom Italia S.P.A.||0||4||2||0||2.33|
BCE has a consensus target price of $57.25, suggesting a potential upside of 19.49%. Given BCE’s stronger consensus rating and higher possible upside, analysts plainly believe BCE is more favorable than Telecom Italia S.P.A..
BCE beats Telecom Italia S.P.A. on 10 of the 14 factors compared between the two stocks.
Telecom Italia S.P.A. Company Profile
Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.
BCE Company Profile
BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.
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