Head to Head Survey: Telefónica (OTCMKTS:TEFOF) and Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (OTCMKTS:MYTAY)

Telefónica (OTCMKTS:TEFOF) and Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (OTCMKTS:MYTAY) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Dividends

Telefónica pays an annual dividend of $0.59 per share and has a dividend yield of 14.2%. Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság pays an annual dividend of $0.48 per share and has a dividend yield of 3.8%. Telefónica pays out 62.0% of its earnings in the form of a dividend. Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Telefónica and Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefónica	N/A	N/A	N/A
Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság	8.02%	10.50%	5.32%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Telefónica and Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefónica	0	0	0	0	N/A
Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság	0	0	0	0	N/A

Insider & Institutional Ownership

20.0% of Telefónica shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Telefónica and Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefónica	N/A	N/A	N/A	$0.96	4.36
Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság	$2.41 billion	1.01	$223.84 million	$1.01	12.55

Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság has higher revenue and earnings than Telefónica. Telefónica is trading at a lower price-to-earnings ratio than Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság, indicating that it is currently the more affordable of the two stocks.

Summary

Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság beats Telefónica on 7 of the 9 factors compared between the two stocks.

About Telefónica

Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, such as mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. It also provides fixed telecommunication services, including PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services, as well as leases and sells handset equipment and telephony information services. It also provides Internet and broadband multimedia services comprising internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, security, internet through fibre to the home, and voice over internet protocol services. In addition, the company offers leased line, virtual private network, fibre optics, web hosting and application, managed hosting, content delivery, outsourcing and application, desktop, and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud, advertising, big data, and digital experience services; Aura; open gateway, living apps; smart Wi-Fi, Phoenix, NT, Solar 360, and Movistar Home devices. Telefónica, S.A. was incorporated in 1924 and is headquartered in Madrid, Spain.

About Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság

Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság provides fixed-line and mobile telecommunication services for residential and small business customers in Hungary, Bulgaria, Romania, and the Republic of North Macedonia. The company operates in MT-Hungary and North Macedonia segments. It offers TV distribution, information communication, and system integration services; mobile telecommunication services, such as prepaid and postpaid plans, TV, broadband, and phone services; internet and voice, Office 365, server and data park, and machine to machine services; and sells telecommunications network and equipment. The company also provides mobile services comprising mobile tariff plans and mobilnet; IT services, including modern office, business support and security, communication solutions, IT devices, servers, and data pack services; and IoT services and data transmission solutions. In addition, it offers fixed line wholesale services comprising access, IP and data, voice, and TV services; mobile wholesale services, such as mobile interconnect and interworking products, and roaming services; international wholesale voice and data services, as well as IPv6 dual-stack services to its residential customers. Further, the company provides system integration and IT services, as well as operates as an interactive service provider of telecommunications applications. It offers its services under the Telekom and T-Systems brands. The company was incorporated in 1991 and is headquartered in Budapest, Hungary. Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság operates as a subsidiary of Deutsche Telekom Europe B.V.