Altice USA (NASDAQ: ATUS) and Telecom Argentina Stet – France Telecom (NYSE:TEO) are both mid-cap telecommunications services companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

5.4% of Telecom Argentina Stet – France Telecom shares are owned by institutional investors. 1.0% of Telecom Argentina Stet – France Telecom shares are owned by 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.

Valuation & Earnings

This table compares Altice USA and Telecom Argentina Stet – France Telecom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Altice USA $9.20 billion 1.90 $3.69 billion N/A N/A
Telecom Argentina Stet – France Telecom $3.39 billion 1.86 $916.25 million $1.93 16.90

Altice USA has higher revenue and earnings than Telecom Argentina Stet – France Telecom.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Altice USA and Telecom Argentina Stet – France Telecom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altice USA 0 7 7 0 2.50
Telecom Argentina Stet – France Telecom 0 2 1 0 2.33

Altice USA currently has a consensus target price of $35.07, suggesting a potential upside of 48.11%. Telecom Argentina Stet – France Telecom has a consensus target price of $29.00, suggesting a potential downside of 11.07%. Given Altice USA’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Altice USA is more favorable than Telecom Argentina Stet – France Telecom.

Profitability

This table compares Altice USA and Telecom Argentina Stet – France Telecom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altice USA -20.39% -63.90% -5.28%
Telecom Argentina Stet – France Telecom 9.99% 27.60% 12.02%

Summary

Altice USA beats Telecom Argentina Stet – France Telecom on 6 of the 11 factors compared between the two stocks.

Altice USA Company Profile

Altice USA, Inc. is engaged in providing broadband communications and video services in the United States. The Company’s segments include Cablevision and Cequel. Cablevision provides broadband, pay television and telephony services to residential and business customers in and around the New York metropolitan area. Cequel provides broadband, pay television and telephony services to residential and business customers in the south-central United States. It also provides services through ten states of Texas, West Virginia, Louisiana, Arkansas, North Carolina, Oklahoma, Arizona, California, Missouri and Ohio. The Company also provides Wi-Fi hotspot access content and advertising services. Broadband provides services, such as video streaming, content downloading for time-shifted video consumption and other applications delivered over OTT platforms. Pay Television provides services through cable network. Video services delivered over DSL networks.

Telecom Argentina Stet – France Telecom Company Profile

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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