Altice USA (NASDAQ: ATUS) and Telecom Argentina Stet – France Telecom (NYSE:TEO) are both mid-cap integrated telecommunications services – nec companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a summary of current ratings and recommmendations for Altice USA and Telecom Argentina Stet – France Telecom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Altice USA 0 7 7 0 2.50
Telecom Argentina Stet – France Telecom 0 2 1 0 2.33

Altice USA currently has a consensus price target of $35.07, indicating a potential upside of 55.25%. Telecom Argentina Stet – France Telecom has a consensus price target of $29.00, indicating a potential downside of 13.43%. Given Altice USA’s stronger consensus rating and higher possible upside, equities analysts clearly believe Altice USA is more favorable than Telecom Argentina Stet – France Telecom.

Profitability

This table compares Altice USA and Telecom Argentina Stet – France Telecom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Altice USA -20.39% -63.90% -5.28%
Telecom Argentina Stet – France Telecom 9.99% 27.60% 12.02%

Institutional and Insider Ownership

5.4% of Telecom Argentina Stet – France Telecom shares are held by institutional investors. 1.0% of Telecom Argentina Stet – France Telecom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Altice USA and Telecom Argentina Stet – France Telecom’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Altice USA N/A N/A N/A ($1.33) -16.98
Telecom Argentina Stet – France Telecom $3.62 billion 1.80 $269.10 million $1.93 17.36

Telecom Argentina Stet – France Telecom has higher revenue and earnings than Altice USA. Altice USA is trading at a lower price-to-earnings ratio than Telecom Argentina Stet – France Telecom, indicating that it is currently the more affordable of the two stocks.

Summary

Telecom Argentina Stet – France Telecom beats Altice USA on 7 of the 10 factors compared between the two stocks.

About Altice USA

Altice USA, Inc. is engaged in providing broadband communications and video services in the United States. The Company’s segments include Cablevision and Cequel. Cablevision provides broadband, pay television and telephony services to residential and business customers in and around the New York metropolitan area. Cequel provides broadband, pay television and telephony services to residential and business customers in the south-central United States. It also provides services through ten states of Texas, West Virginia, Louisiana, Arkansas, North Carolina, Oklahoma, Arizona, California, Missouri and Ohio. The Company also provides Wi-Fi hotspot access content and advertising services. Broadband provides services, such as video streaming, content downloading for time-shifted video consumption and other applications delivered over OTT platforms. Pay Television provides services through cable network. Video services delivered over DSL networks.

About Telecom Argentina Stet – France Telecom

Telecom Argentina S.A. provides fixed-line telecommunications services in Argentina, and also provides other telephone-related services, such as international long-distance service, data transmission, information technology solutions outsourcing and Internet services. The Company’s segments include Fixed Telecommunications Services (Fixed Services), Personal Mobile Telecommunications Services (Personal Mobile Services) and Nucleo Mobile Telecommunications Services (Nucleo Mobile Services). The Company, through its subsidiaries, also provides mobile telecommunications services and international wholesale services. The Fixed services segment consists of basic telephone services, interconnection services, data transmission and Internet services, information and communication technology services, and other telephone services. The Company, through its subsidiaries, such as Telecom Personal S.A. and Nucleo S.A., provides mobile services in Argentina and Paraguay, respectively.

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