Telefonica Brasil (NYSE: VIV) is one of 45 public companies in the “Integrated Telecommunications Services” industry, but how does it compare to its competitors? We will compare Telefonica Brasil to related companies based on the strength of its institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Risk and Volatility

Telefonica Brasil has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Telefonica Brasil’s competitors have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares Telefonica Brasil and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Telefonica Brasil $13.46 billion $4.42 billion 21.96
Telefonica Brasil Competitors $13.52 billion $4.52 billion 5.26

Telefonica Brasil’s competitors have higher revenue and earnings than Telefonica Brasil. Telefonica Brasil is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

10.0% of Telefonica Brasil shares are held by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 4.5% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Telefonica Brasil and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonica Brasil 0 2 1 0 2.33
Telefonica Brasil Competitors 531 1525 1824 65 2.36

Telefonica Brasil currently has a consensus price target of $15.00, indicating a potential downside of 7.69%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 44.78%. Given Telefonica Brasil’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Telefonica Brasil has less favorable growth aspects than its competitors.

Dividends

Telefonica Brasil pays an annual dividend of $0.60 per share and has a dividend yield of 3.7%. Telefonica Brasil pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.8% and pay out 1,357.5% of their earnings in the form of a dividend. Telefonica Brasil has raised its dividend for 4 consecutive years.

Profitability

This table compares Telefonica Brasil and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telefonica Brasil 9.41% 5.91% 3.97%
Telefonica Brasil Competitors 0.63% -1.01% 1.27%

Summary

Telefonica Brasil competitors beat Telefonica Brasil on 9 of the 15 factors compared.

About Telefonica Brasil

Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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