Swisscom (OTCMKTS:SCMWY – Get Free Report) and IHS (NYSE:IHS – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for Swisscom and IHS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Swisscom | 3 | 5 | 0 | 0 | 1.62 |
| IHS | 1 | 4 | 2 | 0 | 2.14 |
IHS has a consensus price target of $8.80, indicating a potential upside of 3.83%. Given IHS’s stronger consensus rating and higher possible upside, analysts plainly believe IHS is more favorable than Swisscom.
Profitability
This table compares Swisscom and IHS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Swisscom | 8.73% | 11.18% | 3.65% |
| IHS | 8.17% | -832.09% | 11.80% |
Institutional & Insider Ownership
17.5% of IHS shares are owned by institutional investors. 1.0% of Swisscom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Swisscom and IHS”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Swisscom | $18.16 billion | 24.54 | $1.53 billion | $3.13 | 27.48 |
| IHS | $1.58 billion | 1.81 | $143.60 million | $0.40 | 21.19 |
Swisscom has higher revenue and earnings than IHS. IHS is trading at a lower price-to-earnings ratio than Swisscom, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Swisscom has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, IHS has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Summary
Swisscom beats IHS on 8 of the 14 factors compared between the two stocks.
About Swisscom
Swisscom AG is a telecommunications and information technology company headquartered in Switzerland. It provides mobile and fixed-line phone services, broadband internet, television and related digital services to residential and business customers. Its business offerings also include IT, cloud and cybersecurity solutions. Swisscom serves customers in Switzerland and Italy. In Italy, it operates through Fastweb; following the integration of Vodafone Italia, the business operates under the Fastweb + Vodafone name.
About IHS
IHS Towers, formally IHS Holding Limited, is an independent owner and operator of shared telecommunications infrastructure. Founded in 2001, the company began in Nigeria and expanded into a multinational provider of infrastructure used by mobile network operators. Its assets and services include wireless communications towers, fiber-optic networks and other infrastructure that help telecom providers extend coverage and capacity. By sharing sites and related facilities among customers, IHS supports the deployment and operation of mobile networks.
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