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

Earnings & Valuation

This table compares PLDT and BCE’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
BCE $17.69 billion 2.37 $6.63 billion $2.44 19.07

BCE has higher revenue and earnings than PLDT. PLDT is trading at a lower price-to-earnings ratio than BCE, 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 stock price is 1% more volatile than the S&P 500. Comparatively, BCE has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for PLDT and BCE, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PLDT 2 1 3 0 2.17
BCE 0 4 4 0 2.50

BCE has a consensus target price of $57.25, suggesting a potential upside of 23.04%. Given BCE’s stronger consensus rating and higher possible upside, analysts plainly believe BCE is more favorable than PLDT.

Institutional and Insider Ownership

9.6% of PLDT shares are held by institutional investors. Comparatively, 44.4% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares PLDT and BCE’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%
BCE 14.23% 20.64% 6.06%

Dividends

PLDT pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. BCE pays an annual dividend of $2.13 per share and has a dividend yield of 4.6%. PLDT pays out 30.9% of its earnings in the form of a dividend. BCE pays out 87.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

BCE beats PLDT on 13 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 BCE

BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.

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