Telecom Argentina Stet – France Telecom (TEO) and Its Competitors Financial Review

Telecom Argentina Stet – France Telecom (NYSE:TEO) is one of 203 public companies in the “Diversified Telecommunication Services” industry, but how does it compare to its peers? We will compare Telecom Argentina Stet – France Telecom to related companies based on the strength of its institutional ownership, valuation, dividends, analyst recommendations, profitability, earnings and risk.

Volatility and Risk

Telecom Argentina Stet – France Telecom has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom’s peers have a beta of -4.90, indicating that their average share price is 590% less volatile than the S&P 500.

Profitability

This table compares Telecom Argentina Stet – France Telecom and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Argentina Stet – France Telecom	7.61%	9.38%	4.11%
Telecom Argentina Stet – France Telecom Competitors	-9.80%	-221.19%	-3.40%

Institutional & Insider Ownership

33.0% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 1.0% of Telecom Argentina Stet – France Telecom shares are owned by company insiders. Comparatively, 19.2% of shares of all “Diversified Telecommunication Services” companies are owned 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.

Analyst Ratings

This is a summary of current ratings and target prices for Telecom Argentina Stet – France Telecom and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Argentina Stet – France Telecom	1	2	4	0	2.43
Telecom Argentina Stet – France Telecom Competitors	1758	5364	7769	385	2.44

Telecom Argentina Stet – France Telecom currently has a consensus target price of $15.93, suggesting a potential upside of 54.25%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 21.78%. Given Telecom Argentina Stet – France Telecom’s higher possible upside, research analysts clearly believe Telecom Argentina Stet – France Telecom is more favorable than its peers.

Valuation and Earnings

This table compares Telecom Argentina Stet – France Telecom and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Telecom Argentina Stet – France Telecom	$6.81 billion	-$136.01 million	8.39
Telecom Argentina Stet – France Telecom Competitors	$24.27 billion	$893.66 million	-167.20

Telecom Argentina Stet – France Telecom’s peers have higher revenue and earnings than Telecom Argentina Stet – France Telecom. Telecom Argentina Stet – France Telecom is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Telecom Argentina Stet – France Telecom beats its peers on 7 of the 13 factors compared.

Telecom Argentina Stet – France Telecom Company Profile

Telecom Argentina S.A. is a telecommunications and digital services provider based in Argentina. Its offerings include mobile and fixed-line phone service, broadband internet, pay television and digital entertainment, serving residential and business customers. The company markets mobile and internet services under the Personal brand and offers television and streaming services through Flow. It also provides connectivity and technology solutions to business and wholesale customers. Telecom Argentina was established in 1990 as part of the privatization of Argentina’s state-owned telephone system.