CenturyLink (CTL) & Telecom Italia S.P.A. (TI) Critical Review
CenturyLink (NYSE: CTL) and Telecom Italia S.P.A. (NYSE:TI) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Insider & Institutional Ownership
83.0% of CenturyLink shares are owned by institutional investors. Comparatively, 0.8% of Telecom Italia S.P.A. shares are owned by institutional investors. 0.6% of CenturyLink shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and recommmendations for CenturyLink and Telecom Italia S.P.A., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telecom Italia S.P.A.||0||4||2||0||2.33|
CenturyLink currently has a consensus price target of $25.55, indicating a potential upside of 34.59%. Given CenturyLink’s higher possible upside, research analysts plainly believe CenturyLink is more favorable than Telecom Italia S.P.A..
Valuation & Earnings
This table compares CenturyLink and Telecom Italia S.P.A.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CenturyLink||$16.97 billion||0.61||$6.06 billion||$0.69||27.51|
|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 CenturyLink.
This table compares CenturyLink and Telecom Italia S.P.A.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telecom Italia S.P.A.||N/A||N/A||N/A|
Risk and Volatility
CenturyLink has a beta of 0.89, indicating that its share price is 11% less 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.
CenturyLink pays an annual dividend of $2.16 per share and has a dividend yield of 11.4%. Telecom Italia S.P.A. does not pay a dividend. CenturyLink pays out 313.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
CenturyLink beats Telecom Italia S.P.A. on 8 of the 15 factors compared between the two stocks.
CenturyLink Company Profile
CenturyLink, Inc. is an integrated communications company. The Company is engaged in providing an array of communications services to its residential and business customers. Its segments include business, which provides strategic, legacy and data integration products and services to small, medium and enterprise business, wholesale and governmental customers, including other communication providers, and consumer, which provides strategic and legacy products and services to residential customers. Its communications services include local and long-distance voice, broadband, Multi-Protocol Label Switching (MPLS), private line (including special access), Ethernet, colocation, hosting (including cloud hosting and managed hosting), data integration, video, network, public access, Voice over Internet Protocol (VoIP), information technology and other ancillary services. As of December 31, 2016, it served approximately 5.9 million broadband subscribers and 325,000 Prism TV subscribers.
Telecom Italia S.P.A. Company Profile
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.
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