Telecom Argentina Stet – France Telecom (TEO) and Frontier Communications Corporation (FTR) Critical Comparison
Frontier Communications Corporation (NASDAQ: FTR) and Telecom Argentina Stet – France Telecom (NYSE:TEO) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Volatility & Risk
Frontier Communications Corporation has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Insider & Institutional Ownership
5.2% of Telecom Argentina Stet – France Telecom shares are owned by institutional investors. 0.9% of Frontier Communications Corporation shares are owned by insiders. Comparatively, 1.0% of Telecom Argentina Stet – France Telecom 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.
This is a summary of current ratings and recommmendations for Frontier Communications Corporation and Telecom Argentina Stet – France Telecom, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Frontier Communications Corporation||2||9||2||0||2.00|
|Telecom Argentina Stet – France Telecom||0||2||2||0||2.50|
Frontier Communications Corporation currently has a consensus price target of $7.33, indicating a potential downside of 45.88%. Telecom Argentina Stet – France Telecom has a consensus price target of $29.00, indicating a potential downside of 5.48%. Given Telecom Argentina Stet – France Telecom’s stronger consensus rating and higher probable upside, analysts clearly believe Telecom Argentina Stet – France Telecom is more favorable than Frontier Communications Corporation.
Frontier Communications Corporation pays an annual dividend of $2.40 per share and has a dividend yield of 17.7%. Telecom Argentina Stet – France Telecom does not pay a dividend. Frontier Communications Corporation pays out -16.6% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Frontier Communications Corporation and Telecom Argentina Stet – France Telecom’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Frontier Communications Corporation||$9.59 billion||0.11||$3.74 billion||($14.42)||-0.94|
|Telecom Argentina Stet – France Telecom||$3.30 billion||1.80||$893.47 million||$1.93||15.90|
Frontier Communications Corporation has higher revenue and earnings than Telecom Argentina Stet – France Telecom. Frontier Communications Corporation is trading at a lower price-to-earnings ratio than Telecom Argentina Stet – France Telecom, indicating that it is currently the more affordable of the two stocks.
This table compares Frontier Communications Corporation and Telecom Argentina Stet – France Telecom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Frontier Communications Corporation||-9.35%||-1.28%||-0.19%|
|Telecom Argentina Stet – France Telecom||9.99%||27.60%||12.02%|
Telecom Argentina Stet – France Telecom beats Frontier Communications Corporation on 10 of the 14 factors compared between the two stocks.
About Frontier Communications Corporation
Frontier Communications Corporation (Frontier) is a provider of communications services in the United States. The Company offers a portfolio of communications services for residential and business customers. Its products and services include data and Internet services, video services, voice services, access services and customer premise equipment (CPE). The Company offers a range of broadband services. The principal residential service it provides is broadband Internet service. Its commercial services include Ethernet, Dedicated Internet, Multiprotocol Label Switching (MPLS), Time Division Multiplexing (TDM) data transport services and optical transport services. It also offers wireless broadband services (using unlicensed spectrum) in various markets utilizing networks that it owns or operates. In addition, the Company offers its Frontier Secure suite of products, including computer security, cloud backup and sharing, identity protection and equipment insurance.
About Telecom Argentina Stet – France Telecom
Telecom Argentina S.A. provides fixed-line telecommunications services in Argentina, and also provides other telephone-related services, such as international long-distance service, data transmission, information technology solutions outsourcing and Internet services. The Company’s segments include Fixed Telecommunications Services (Fixed Services), Personal Mobile Telecommunications Services (Personal Mobile Services) and Nucleo Mobile Telecommunications Services (Nucleo Mobile Services). The Company, through its subsidiaries, also provides mobile telecommunications services and international wholesale services. The Fixed services segment consists of basic telephone services, interconnection services, data transmission and Internet services, information and communication technology services, and other telephone services. The Company, through its subsidiaries, such as Telecom Personal S.A. and Nucleo S.A., provides mobile services in Argentina and Paraguay, respectively.
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