BCE (NYSE: BCE) and IDT Corporation (NYSE:IDT) are both large-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for BCE and IDT Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BCE 0 5 5 0 2.50
IDT Corporation 0 0 0 0 N/A

BCE presently has a consensus price target of $57.80, suggesting a potential upside of 21.81%. Given BCE’s higher possible upside, analysts plainly believe BCE is more favorable than IDT Corporation.

Insider and Institutional Ownership

43.0% of BCE shares are held by institutional investors. Comparatively, 51.3% of IDT Corporation shares are held by institutional investors. 0.2% of BCE shares are held by company insiders. Comparatively, 12.8% of IDT Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares BCE and IDT Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BCE 12.78% 20.80% 5.82%
IDT Corporation 0.55% 14.31% 4.45%

Volatility & Risk

BCE has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, IDT Corporation has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Dividends

BCE pays an annual dividend of $2.30 per share and has a dividend yield of 4.8%. IDT Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 5.9%. BCE pays out 93.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IDT Corporation pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares BCE and IDT Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
BCE $16.40 billion 2.60 $2.29 billion $2.46 19.29
IDT Corporation $1.50 billion 0.21 $8.17 million $0.38 33.79

BCE has higher revenue and earnings than IDT Corporation. BCE is trading at a lower price-to-earnings ratio than IDT Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

BCE beats IDT Corporation on 11 of the 15 factors compared between the two stocks.

BCE Company Profile

BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.

IDT Corporation Company Profile

IDT Corporation is a holding company with operations primarily in the telecommunications and payment industries. The Company’s segments include Telecom Platform Services, Consumer Phone Services and All Other. The Company’s Telecom Platform Services segment provides retail telecommunications and payment offerings, as well as wholesale international long distance traffic termination. The Telecom Platform Services segment markets and distributes multiple communications and payment services across four businesses: Retail Communications, Wholesale Carrier Services, Payment Services and Hosted Platform Solutions. The Company’s Consumer Phone Services segment provides consumer local and long distance services in certain states of the United States. The Telecom Platform Services and Consumer Phone Services segments comprise the Company’s IDT Telecom division. The All Other segment includes its real estate holdings and other smaller businesses.

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