Analyzing Freenet (FRTAF) & Its Competitors

Freenet (OTCMKTS:FRTAF) is one of 33 public companies in the “Wireless Telecommunication Services” industry, but how does it compare to its competitors? We will compare Freenet to similar businesses based on the strength of its earnings, valuation, profitability, risk, analyst recommendations, institutional ownership and dividends.

Institutional & Insider Ownership

48.6% of shares of all “Wireless Telecommunication Services” companies are held by institutional investors. 23.2% of shares of all “Wireless Telecommunication Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Freenet has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500. Comparatively, Freenet’s competitors have a beta of 1.88, indicating that their average stock price is 88% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Freenet and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freenet	0	2	1	1	2.75
Freenet Competitors	300	871	1428	135	2.51

As a group, “Wireless Telecommunication Services” companies have a potential upside of 24.46%. Given Freenet’s competitors higher possible upside, analysts plainly believe Freenet has less favorable growth aspects than its competitors.

Profitability

This table compares Freenet and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freenet	10.04%	17.88%	7.85%
Freenet Competitors	91.12%	13.81%	4.62%

Valuation and Earnings

This table compares Freenet and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Freenet	$2.76 billion	$306.95 million	10.55
Freenet Competitors	$27.43 billion	$2.74 billion	15.03

Freenet’s competitors have higher revenue and earnings than Freenet. Freenet is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Freenet competitors beat Freenet on 9 of the 13 factors compared.

About Freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.