PLDT (NYSE: PHI) and Cincinnati Bell (NYSE:CBB) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Dividends

PLDT pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. Cincinnati Bell does not pay a dividend. PLDT pays out 30.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

9.6% of PLDT shares are owned by institutional investors. Comparatively, 85.1% of Cincinnati Bell shares are owned by institutional investors. 1.4% of Cincinnati Bell shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for PLDT and Cincinnati Bell, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PLDT 2 1 3 0 2.17
Cincinnati Bell 2 2 1 0 1.80

Cincinnati Bell has a consensus price target of $23.50, indicating a potential upside of 9.56%. Given Cincinnati Bell’s higher possible upside, analysts clearly believe Cincinnati Bell is more favorable than PLDT.

Profitability

This table compares PLDT and Cincinnati Bell’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PLDT 11.59% 20.92% 4.88%
Cincinnati Bell 6.84% -3.87% 0.70%

Earnings and Valuation

This table compares PLDT and Cincinnati Bell’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PLDT $3.15 billion 2.32 $1.19 billion $1.81 18.65
Cincinnati Bell $1.17 billion 0.77 $282.90 million $1.65 13.00

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

Risk and Volatility

PLDT has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Cincinnati Bell has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Summary

PLDT beats Cincinnati Bell on 11 of the 16 factors compared between the two stocks.

About PLDT

PLDT, Inc., formerly Philippine Long Distance Telephone Company (PLDT), is a telecommunications service provider in the Philippines. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines’ fiber optic backbone and wireless and fixed line networks. The Company’s wireless segment provides cellular, wireless broadband and other services, and digital platforms and mobile financial services. Its Fixed Line segment provides local exchange, international long distance, national long distance, data and other network and miscellaneous services under its fixed line business. It offers postpaid and prepaid fixed line services. Its Other business consists of PLDT Communications and Energy Ventures, Inc. (PCEV), an investment holding company. It also focuses on providing wireless voice communications and wireless data communications.

About Cincinnati Bell

Cincinnati Bell Inc., along with its subsidiaries, provides diversified telecommunications and technology services. The Company operates through two segments: Entertainment and Communications, and IT Services and Hardware. Through its Entertainment and Communications segment, the Company provides high-speed data, video and voice solutions to consumers and businesses over fiber network and a legacy copper network. The IT Services and Hardware segments operates through its subsidiary, Cincinnati Bell Technology Solutions Inc. (CBTS), which is engaged in the sale and service of end-to-end communications and information technology (IT) systems and solutions for business customers across the United States. The Company has interest in CyrusOne Inc., which operates carrier-neutral data center colocation business.

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