BT Group PLC (NYSE: BT) is one of 45 public companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its rivals? We will compare BT Group PLC to related companies based on the strength of its earnings, risk, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Profitability

This table compares BT Group PLC and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BT Group PLC 7.14% 39.24% 6.77%
BT Group PLC Competitors 1.31% 0.48% 1.68%

Valuation & Earnings

This table compares BT Group PLC and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
BT Group PLC $31.83 billion $9.05 billion 17.88
BT Group PLC Competitors $13.52 billion $4.52 billion 5.16

BT Group PLC has higher revenue and earnings than its rivals. BT Group PLC is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

1.0% of BT Group PLC shares are owned by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 4.5% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

BT Group PLC has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, BT Group PLC’s rivals have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Dividends

BT Group PLC pays an annual dividend of $0.95 per share and has a dividend yield of 5.1%. BT Group PLC pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.9% and pay out 1,359.0% of their earnings in the form of a dividend. BT Group PLC has increased its dividend for 5 consecutive years. BT Group PLC is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BT Group PLC and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BT Group PLC 3 8 7 0 2.22
BT Group PLC Competitors 532 1529 1824 65 2.36

BT Group PLC currently has a consensus target price of $352.35, suggesting a potential upside of 1,795.39%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 29.01%. Given BT Group PLC’s higher probable upside, analysts plainly believe BT Group PLC is more favorable than its rivals.

Summary

BT Group PLC beats its rivals on 10 of the 15 factors compared.

About BT Group PLC

BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as managed networked information technology (IT) solutions and cyber security protection. Its segments include Consumer, which provides fixed-voice, broadband, TV and mobile services; EE, which is a mobile network operator in the United Kingdom and provides mobile and fixed communications services to consumers; Business and Public Sector, which provides communications and IT services to businesses and the public sector in the United Kingdom and the Republic of Ireland (RoI) ;Global Services, which provides managed networked IT services to corporate customers; Wholesale and Ventures, which provides fixed and mobile services to communications providers (CPs); and Openreach, which provides copper and fiber connections between its exchanges and homes and businesses.

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