TalkTalk Telecom Group (TKTCY) and PLDT (PHI) Critical Comparison

TalkTalk Telecom Group (OTCMKTS:TKTCY) and PLDT (NYSE:PHI) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares TalkTalk Telecom Group and PLDT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TalkTalk Telecom Group N/A N/A N/A
PLDT 5.24% 20.18% 5.00%

Earnings and Valuation

This table compares TalkTalk Telecom Group and PLDT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TalkTalk Telecom Group $2.33 billion 1.02 $75.82 million N/A N/A
PLDT $3.17 billion 1.75 $264.74 million $2.53 10.13

PLDT has higher revenue and earnings than TalkTalk Telecom Group.

Institutional and Insider Ownership

6.7% of PLDT shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

TalkTalk Telecom Group has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, PLDT has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for TalkTalk Telecom Group and PLDT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TalkTalk Telecom Group 0 1 1 0 2.50
PLDT 1 4 2 0 2.14

Dividends

TalkTalk Telecom Group pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. PLDT pays an annual dividend of $0.89 per share and has a dividend yield of 3.5%. PLDT pays out 35.2% of its earnings in the form of a dividend.

Summary

PLDT beats TalkTalk Telecom Group on 10 of the 12 factors compared between the two stocks.

About TalkTalk Telecom Group

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

About PLDT

PLDT Inc. operates as a telecommunications company in the Philippines. The company's Wireless segment offers cellular mobile, Internet broadband distribution, operations support, mobile applications and digital platforms development, mobile payment, solutions and systems integration, satellite communications, and satellite information and messaging services. It also operates as a content provider; develops and maintains IT-based solutions for communications and e-commerce platforms; develops financial technology solutions; provides insurance products; markets, sells, and distributes payment solutions and other related services; and sells Wi-Fi access equipment. As of December 31, 2017, this segment served 58,531,262 wireless subscribers. Its Fixed Line segment provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. This segment also offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, bills printing and other related value-added, and air transportation services, as well as distributes Filipino channels and content services. As of December 31, 2017, it had 2,663,210 fixed line subscribers. The company has a strategic partnership with Rocket Internet SE to develop online and mobile payment solutions. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was founded in 1928 and is based in Makati City, the Philippines.

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