Telekom Austria (TKAGY) vs. Bell Canada (BCE) Head to Head Comparison

Bell Canada (NYSE: BCE) and Telekom Austria (OTCMKTS:TKAGY) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

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Bell Canada has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Telekom Austria has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares Bell Canada and Telekom Austria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bell Canada 12.25% 19.85% 5.61%
Telekom Austria 7.21% 14.15% 5.29%

Dividends

Bell Canada pays an annual dividend of $2.40 per share and has a dividend yield of 5.6%. Telekom Austria pays an annual dividend of $0.42 per share and has a dividend yield of 2.3%. Bell Canada pays out 91.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telekom Austria pays out 30.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Bell Canada and Telekom Austria’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bell Canada $17.52 billion 2.22 $2.25 billion $2.62 16.47
Telekom Austria $4.95 billion 1.22 $360.52 million $1.36 13.33

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bell Canada and Telekom Austria, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bell Canada 0 4 3 0 2.43
Telekom Austria 0 1 0 0 2.00

Bell Canada currently has a consensus price target of $57.00, indicating a potential upside of 32.07%. Given Bell Canada’s stronger consensus rating and higher probable upside, research analysts clearly believe Bell Canada is more favorable than Telekom Austria.

Insider & Institutional Ownership

45.0% of Bell Canada shares are held by institutional investors. Comparatively, 0.0% of Telekom Austria shares are held by institutional investors. 0.2% of Bell Canada shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Bell Canada beats Telekom Austria on 14 of the 16 factors compared between the two stocks.

Bell Canada Company Profile

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers integrated digital wireless voice and data communications products and services. The Bell Wireline segment provides data, including Internet access, Internet protocol TV and telephony, local telephone, and long distance, as well as other communications services and products; and satellite TV and connectivity services. This segment also offers home security and monitoring services; competitive local exchange carrier services; business service solutions, such as hosting and cloud, managed, professional, and infrastructure services; virtual private networks, point-to-point data networks, and international network solutions; and Web and audio conferencing, and email solutions. The Bell Media segment offers conventional, specialty, and pay TV; and digital media, radio broadcasting, and out-of-home advertising services, as well as sports and other event production and broadcasting services. This segment owns and operates approximately 30 conventional TV stations; 34 specialty and 4 pay TV channels; 105 licensed radio stations; 31,000 advertising faces; and 200 Websites and approximately 30 apps. The company also distributes mobile products. BCE Inc. offers its services through a network of corporate and dealer-owned retail stores, national retailers, and call center representatives, as well as Websites and door-to-door sales representatives. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

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. It operates in seven segments: Austria, Bulgaria, Croatia, Belarus, Slovenia, Republic of Serbia, and Republic of Macedonia. The company's 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. It 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, the company sells end-user terminal equipment; and sets up customer lines that include installation work. As of December 31, 2016, it provides mobile communication services to approximately 20.7 million customers; and had approximately 5.9 million fixed-line revenue generating units. The company is headquartered in Vienna, Austria. Telekom Austria Aktiengesellschaft is a subsidiary of América Móvil B.V.

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