Contrasting Telecom Italia (OTCMKTS:TIIAY) & Grupo Televisa (NYSE:TV)

Telecom Italia (OTCMKTS:TIIAY) and Grupo Televisa (NYSE:TV) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Telecom Italia and Grupo Televisa, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Italia	0	2	1	3	3.17
Grupo Televisa	0	3	2	0	2.40

Grupo Televisa has a consensus target price of $4.70, indicating a potential upside of 63.42%. Given Grupo Televisa’s higher possible upside, analysts clearly believe Grupo Televisa is more favorable than Telecom Italia.

Earnings & Valuation

This table compares Telecom Italia and Grupo Televisa”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Italia	$15.88 billion	N/A	-$660.08 million	N/A	N/A
Grupo Televisa	$60.29 billion	0.03	-$453.78 million	($0.75)	-3.83

Grupo Televisa has higher revenue and earnings than Telecom Italia.

Volatility and Risk

Telecom Italia has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Profitability

This table compares Telecom Italia and Grupo Televisa’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
Grupo Televisa	-13.56%	-6.95%	-3.20%

Insider & Institutional Ownership

55.8% of Grupo Televisa shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Grupo Televisa beats Telecom Italia on 6 of the 11 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 Grupo Televisa

Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.