Contrasting Telekom Austria (TKAGY) & GTT Communications (GTT)

Telekom Austria (NYSE: GTT) and GTT Communications (NYSE:GTT) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Telekom Austria and GTT Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telekom Austria 0 2 0 0 2.00
GTT Communications 1 1 7 0 2.67

GTT Communications has a consensus price target of $52.50, indicating a potential upside of 31.25%. Given GTT Communications’ stronger consensus rating and higher probable upside, analysts plainly believe GTT Communications is more favorable than Telekom Austria.

Profitability

This table compares Telekom Austria and GTT Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telekom Austria 4.67% 10.04% 3.83%
GTT Communications -21.82% -45.46% -5.45%

Risk and Volatility

Telekom Austria has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, GTT Communications has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Institutional and Insider Ownership

65.0% of GTT Communications shares are owned by institutional investors. 23.0% of GTT Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Telekom Austria and GTT Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telekom Austria $4.95 billion 1.14 $389.34 million $1.36 12.51
GTT Communications $827.90 million 2.64 -$71.50 million $0.24 166.67

Telekom Austria has higher revenue and earnings than GTT Communications. Telekom Austria is trading at a lower price-to-earnings ratio than GTT Communications, indicating that it is currently the more affordable of the two stocks.

Dividends

Telekom Austria pays an annual dividend of $0.45 per share and has a dividend yield of 2.6%. GTT Communications does not pay a dividend. Telekom Austria pays out 33.1% of its earnings in the form of a dividend.

Summary

GTT Communications beats Telekom Austria on 9 of the 16 factors compared between the two stocks.

Telekom Austria Company Profile

Telekom Austria Aktiengesellschaft, together with its subsidiaries, provides fixed-line and mobile communications services to individuals, commercial and non-commercial organizations, and other national and foreign carriers. Its fixed-line services include access, Internet, fixed-to-mobile calls, international traffic, voice value-added services, interconnection, call center services, data and ICT solutions, television services, and public payphone services; and mobile communications services comprise digital mobile communications services, including value-added services, text and multimedia messaging, m-commerce, and information services. The company also provides voice telephony, convergent products, Internet access, data and IT solutions, value added services, wholesale services, and IP television and payment solutions, as well as mobile telephone and satellite television services. In addition, it sells end-user terminal equipment; and sets up customer lines that include installation work. As of December 31, 2017, the company provided mobile communication services to approximately 20.7 million customers; and had approximately 6.0 million fixed-line revenue generating units. It has operations in Austria, Slovenia, Bulgaria, Belarus, Croatia, the Republic of Serbia, and the Republic of Macedonia. The company is headquartered in Vienna, Austria. Telekom Austria Aktiengesellschaft is a subsidiary of América Móvil, S.A.B. de C.V.

GTT Communications Company Profile

GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers worldwide. The company provides private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless access services; managed equipment and security services; and voice and unified communications services consisting of SIP trunking and enterprise PBX services. It also offers video transport services for the transmission of live events, sport, entertainment, and news to broadcasters and cable programming providers; and network access services. The company's IP network consists of approximately 600 points of presence. GTT Communications, Inc. markets its products and services through a network of direct sales force and indirect sales channels. The company was formerly known as Global Telecom & Technology, Inc. and changed its name to GTT Communications, Inc. in January 2014. GTT Communications, Inc. was founded in 2005 and is headquartered in McLean, Virginia.

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