Analyzing Telecom Italia (OTCMKTS:TIIAY) and Liberty Global (NASDAQ:LBTYA)

Telecom Italia (OTCMKTS:TIIAY) and Liberty Global (NASDAQ:LBTYA) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Telecom Italia has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Liberty Global has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Telecom Italia and Liberty Global”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Italia	$15.88 billion	0.78	-$660.08 million	N/A	N/A
Liberty Global	$4.77 billion	0.77	$1.59 billion	($6.09)	-1.78

Liberty Global has lower revenue, but higher earnings than Telecom Italia.

Insider & Institutional Ownership

37.2% of Liberty Global shares are owned by institutional investors. 13.3% of Liberty Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds 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 Italia and Liberty Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Italia	0	2	1	3	3.17
Liberty Global	2	6	2	0	2.00

Liberty Global has a consensus target price of $14.26, suggesting a potential upside of 31.66%. Given Liberty Global’s higher possible upside, analysts plainly believe Liberty Global is more favorable than Telecom Italia.

Profitability

This table compares Telecom Italia and Liberty Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Italia	N/A	N/A	N/A
Liberty Global	-60.38%	-22.64%	-10.77%

Summary

Telecom Italia beats Liberty Global on 7 of the 13 factors compared between the two stocks.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.

About Liberty Global

Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.