Orange SA (NASDAQ: ORAN) and Neustar (NYSE:NSR) are both integrated telecommunications services – nec companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Insider & Institutional Ownership

88.8% of Neustar shares are held by institutional investors. 2.9% of Neustar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Orange SA and Neustar, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orange SA 2 0 3 0 2.20
Neustar 0 2 0 0 2.00

Neustar has a consensus target price of $29.00, suggesting a potential downside of 13.43%. Given Neustar’s higher probable upside, analysts plainly believe Neustar is more favorable than Orange SA.

Profitability

This table compares Orange SA and Neustar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orange SA 4.09% 4.47% 1.76%
Neustar 15.50% 19.28% 8.80%

Earnings & Valuation

This table compares Orange SA and Neustar’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Orange SA N/A N/A N/A $0.20 82.30
Neustar N/A N/A N/A $3.27 10.24

Neustar is trading at a lower price-to-earnings ratio than Orange SA, indicating that it is currently the more affordable of the two stocks.

Summary

Neustar beats Orange SA on 7 of the 9 factors compared between the two stocks.

About Orange SA

Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.

About Neustar

NeuStar, Inc. is a global information services provider. The Company’s cloud-based platforms and differentiated data sets offer informative, real-time analytics, which enable clients to make actionable, data-driven decisions. It provides chief marketing officers a suite of services to plan their media spends, identify and locate desired customers, invest in marketing campaigns, deliver relevant offers and measure the performance of these activities. Security professionals use the Company’s solutions to maximize Web performance and protect against malicious attacks. It enables the exchange of essential operating information across multiple carriers to provision and manage services, assisting clients with order processing and routing of customer inquiries. The Company’s services include marketing services, security services, data services and number portability administration center (NPAC) services.

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