TEF vs. BCE, VIV, WEC, AWK, TU, EIX, VST, ETR, DTE, and CHT
Should you be buying Telefónica stock or one of its competitors? The main competitors of Telefónica include BCE (BCE), Telefônica Brasil (VIV), WEC Energy Group (WEC), American Water Works (AWK), TELUS (TU), Edison International (EIX), Vistra (VST), Entergy (ETR), DTE Energy (DTE), and Chunghwa Telecom (CHT). These companies are all part of the "utilities" sector.
BCE (NYSE:BCE) and Telefónica (NYSE:TEF) are both large-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, media sentiment, community ranking, earnings, dividends, analyst recommendations, valuation and profitability.
BCE has higher earnings, but lower revenue than Telefónica. Telefónica is trading at a lower price-to-earnings ratio than BCE, indicating that it is currently the more affordable of the two stocks.
41.5% of BCE shares are held by institutional investors. Comparatively, 1.1% of Telefónica shares are held by institutional investors. 0.2% of BCE shares are held by company insiders. Comparatively, 0.0% of Telefónica shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Telefónica received 186 more outperform votes than BCE when rated by MarketBeat users. Likewise, 57.80% of users gave Telefónica an outperform vote while only 56.61% of users gave BCE an outperform vote.
BCE has a net margin of 7.53% compared to BCE's net margin of -1.57%. Telefónica's return on equity of 16.86% beat BCE's return on equity.
BCE currently has a consensus target price of $49.00, suggesting a potential upside of 42.69%. Given Telefónica's stronger consensus rating and higher probable upside, research analysts clearly believe BCE is more favorable than Telefónica.
BCE pays an annual dividend of $2.95 per share and has a dividend yield of 8.6%. Telefónica pays an annual dividend of $0.23 per share and has a dividend yield of 5.2%. BCE pays out 204.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telefónica pays out -143.8% of its earnings in the form of a dividend. BCE has increased its dividend for 2 consecutive years. BCE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
BCE has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Telefónica has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
In the previous week, BCE had 10 more articles in the media than Telefónica. MarketBeat recorded 12 mentions for BCE and 2 mentions for Telefónica. Telefónica's average media sentiment score of 0.88 beat BCE's score of 0.20 indicating that BCE is being referred to more favorably in the media.
Summary
BCE beats Telefónica on 16 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TEF and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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