Contrasting Deutsche Telekom (OTCMKTS:DTEGY) & Its Rivals

Deutsche Telekom (OTCMKTS: DTEGY) is one of 20 public companies in the “Radiotelephone communication” industry, but how does it compare to its competitors? We will compare Deutsche Telekom to related companies based on the strength of its risk, institutional ownership, valuation, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

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This is a breakdown of current recommendations for Deutsche Telekom and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deutsche Telekom 0 3 5 1 2.78
Deutsche Telekom Competitors 183 522 739 24 2.41

Deutsche Telekom presently has a consensus target price of $55.00, indicating a potential upside of 222.20%. As a group, “Radiotelephone communication” companies have a potential upside of 25.92%. Given Deutsche Telekom’s stronger consensus rating and higher possible upside, research analysts plainly believe Deutsche Telekom is more favorable than its competitors.

Dividends

Deutsche Telekom pays an annual dividend of $0.65 per share and has a dividend yield of 3.8%. Deutsche Telekom pays out 65.7% of its earnings in the form of a dividend. As a group, “Radiotelephone communication” companies pay a dividend yield of 4.0% and pay out 78.8% of their earnings in the form of a dividend.

Insider and Institutional Ownership

0.1% of Deutsche Telekom shares are held by institutional investors. Comparatively, 25.6% of shares of all “Radiotelephone communication” companies are held by institutional investors. 8.6% of shares of all “Radiotelephone communication” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Deutsche Telekom and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Deutsche Telekom $80.91 billion $2.96 billion 17.24
Deutsche Telekom Competitors $14.87 billion $351.26 million 35.08

Deutsche Telekom has higher revenue and earnings than its competitors. Deutsche Telekom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Deutsche Telekom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deutsche Telekom -0.27% 10.75% 2.91%
Deutsche Telekom Competitors 2.30% -19.54% 2.56%

Volatility and Risk

Deutsche Telekom has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Deutsche Telekom’s competitors have a beta of 1.63, indicating that their average stock price is 63% more volatile than the S&P 500.

Summary

Deutsche Telekom beats its competitors on 9 of the 15 factors compared.

Deutsche Telekom Company Profile

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services worldwide. The company operates through five segments: Germany, United States, Europe, Systems Solutions, and Group Development. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. The company also provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. In addition, it offers Internet services; Internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and networks under the T-Systems brand, as well as call center services. The company has 168 million mobile customers, and approximately 28 million fixed-network and 19 million broadband lines. Deutsche Telekom AG was founded in 1995 and is headquartered in Bonn, Germany.

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