Analyzing SoftBank Group (SFTBY) & Telenor ASA (TELNY)
SoftBank Group (OTCMKTS:SFTBY) and Telenor ASA (OTCMKTS:TELNY) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
SoftBank Group pays an annual dividend of $0.14 per share and has a dividend yield of 0.3%. Telenor ASA pays an annual dividend of $0.83 per share and has a dividend yield of 4.1%. SoftBank Group pays out 3.4% of its earnings in the form of a dividend. Telenor ASA pays out 65.4% 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.
1.2% of SoftBank Group shares are held by institutional investors. Comparatively, 0.0% of Telenor ASA shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares SoftBank Group and Telenor ASA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for SoftBank Group and Telenor ASA, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SoftBank Group presently has a consensus target price of $53.00, suggesting a potential upside of 8.78%. Given SoftBank Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SoftBank Group is more favorable than Telenor ASA.
Volatility & Risk
SoftBank Group has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Telenor ASA has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Valuation & Earnings
This table compares SoftBank Group and Telenor ASA’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SoftBank Group||$82.70 billion||1.28||$9.38 billion||$4.10||11.88|
|Telenor ASA||$15.10 billion||2.04||$1.45 billion||$1.27||16.12|
SoftBank Group has higher revenue and earnings than Telenor ASA. SoftBank Group is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.
SoftBank Group beats Telenor ASA on 9 of the 15 factors compared between the two stocks.
SoftBank Group Company Profile
SoftBank Group Corp., together with its subsidiaries, operates in the information industry in Japan and internationally. The company operates through six segments: Domestic Telecommunications, Sprint, Yahoo Japan, Distribution, ARM, and SoftBank Vision Fund and Delta Fund. The Domestic Telecommunications segment provides mobile communications and broadband services; and telecom services, such as data communications and fixed-line telephone services to corporate customers, as well as sells mobile devices. The Sprint segment offers mobile communications and fixed-line telecommunications services; and leases and sells mobile devices and accessories. The Yahoo Japan segment is involved in Internet advertising, e-commerce, and membership service businesses. The Distribution segment distributes mobile devices; and sells PC software, peripherals, and mobile device accessories. The ARM segment designs microprocessor intellectual property and related technology; and sells software tools. The SoftBank Vision Fund and Delta Fund segment is involved in investment activities. Further, the company operates professional baseball team, as well as manages and maintains baseball stadium and other sports facilities; provides visual, audio, and data content distribution services; generates, supplies, and sells electricity from renewable energy sources; operates IT information site; offers solutions and services for online businesses; and operates software site, through which it conducts an online game business for mobile phones and PCs, as well as engages in robotics planning, development, and marketing activities. SoftBank Group Corp. was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. The company was founded in 1981 and is headquartered in Tokyo, Japan.
Telenor ASA Company Profile
Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company's mobile communication services comprise voice, data, Internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcasting services include DTH, broadcasting and data communication services through satellite, and terrestrial radio and TV transmission. The company also provides wholesale services that enable the operators to route international voice, messaging, data, and signaling traffic through a single connection to a global network, as well as handles international roaming relationships. In addition, it offers digital services, such as international communication services and machine to machine communication, as well as Internet based services, digital media advertising, and financial services. Further, the company sells mobile devices; and leases base station sites, equipment primarily in the satellite business, and properties. Telenor ASA was founded in 1885 and is headquartered in Fornebu, Norway.
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