Critical Comparison: Vivendi (OTCMKTS:VIVHY) and Telecom Italia (OTCMKTS:TIIAY)

Vivendi (OTCMKTS:VIVHY) and Telecom Italia (OTCMKTS:TIIAY) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Vivendi and Telecom Italia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vivendi	0	0	1	0	3.00
Telecom Italia	0	2	1	1	2.75

Profitability

This table compares Vivendi and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vivendi	N/A	N/A	N/A
Telecom Italia	N/A	N/A	N/A

Volatility and Risk

Vivendi has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Vivendi and Telecom Italia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivendi	$347.26 million	7.60	$22.63 million	N/A	N/A
Telecom Italia	$15.88 billion	1.14	-$660.08 million	N/A	N/A

Vivendi has higher earnings, but lower revenue than Telecom Italia.

Summary

Vivendi beats Telecom Italia on 4 of the 6 factors compared between the two stocks.

About Vivendi

Vivendi SE operates as an entertainment, media, and communication company in France, the rest of Europe, the Americas, Asia/Oceania, and Africa. It operates through Canal+ Group, Lagardère, Havas, Prisma Media, Gameloft, Vivendi Village, New Initiatives, and Generosity and Solidarity segments. The Canal+ Group segment publishes and distributes premium and thematic pay-TV and free-to-air channels; and produces, sells, and distributes movies and TV series. The Lagardère segment engages in the publishing, media, and travel retail activities. The Havas segment includes communications disciplines, such as creativity, media expertise, and healthcare/wellness. The Prisma Media segment publishes French magazines and online videos. The Gameloft segment engages in the creation and publishing of downloadable video games for various console-PC-mobile platforms, tablets, triple-play boxes, and smart TVs. The Vivendi Village segment provides ticketing services and live performances through Olympia production, festival production, and venues. The New Initiatives segment operates Dailymotion, a video content aggregation and distribution platform, as well as develops ultra-high-speed Internet service. The Generosity and Solidarity segment operates CanalOlympia; and Vivendi Foundation, a Create Joy solidarity program, which supports initial and professional training projects. The company was founded in 1853 and is headquartered in Paris, France.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.