Level 3 Communications (NYSE: LVLT) and Telecom Italia S.P.A. (NYSE:TI) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Institutional & Insider Ownership

98.7% of Level 3 Communications shares are held by institutional investors. Comparatively, 0.8% of Telecom Italia S.P.A. shares are held by institutional investors. 0.5% of Level 3 Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Level 3 Communications has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Telecom Italia S.P.A. has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Level 3 Communications and Telecom Italia S.P.A.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Level 3 Communications $8.17 billion 2.37 $2.66 billion $1.76 30.32
Telecom Italia S.P.A. $23.57 billion 0.84 $10.16 billion N/A N/A

Telecom Italia S.P.A. has higher revenue and earnings than Level 3 Communications.

Analyst Recommendations

This is a summary of recent recommendations for Level 3 Communications and Telecom Italia S.P.A., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Level 3 Communications 1 11 2 0 2.07
Telecom Italia S.P.A. 0 4 2 0 2.33

Level 3 Communications presently has a consensus price target of $61.03, indicating a potential upside of 14.36%. Given Level 3 Communications’ higher probable upside, equities research analysts plainly believe Level 3 Communications is more favorable than Telecom Italia S.P.A..

Profitability

This table compares Level 3 Communications and Telecom Italia S.P.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Level 3 Communications 7.85% 5.80% 2.55%
Telecom Italia S.P.A. N/A N/A N/A

Summary

Level 3 Communications beats Telecom Italia S.P.A. on 8 of the 11 factors compared between the two stocks.

About Level 3 Communications

Level 3 Communications, Inc. is a provider of a range of integrated communications services. The Company’s operating segments include North America, EMEA and Latin America. The North America includes operations in Atlanta, Georgia; Littleton, Colorado; Miami, Florida; Montreal, Canada; New York, New York; Phoenix, Arizona; Pittsburgh, Pennsylvania; Southfield, Michigan, and Tulsa, Oklahoma. The Europe segment includes operations in Basingstoke, England; Crewe, England; Dublin, Ireland; London, England; Amsterdam, The Netherlands, and Paris, France. The Latin America includes operations in Colombia; Buenos Aires, Argentina; Caracas, Venezuela; Lima, Peru; Quito, Ecuador; Santiago, Chile, and Sao Paulo, Brazil. It offers optical, Internet Protocol, computing and storage technologies. It offers a range of communications services, including Internet Protocol (IP) and data services, transport and fiber services, colocation and data center services, security services and voice services.

About Telecom Italia S.P.A.

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

Receive News & Ratings for Level 3 Communications Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Level 3 Communications Inc. and related companies with MarketBeat.com's FREE daily email newsletter.