Critical Review: Orange (OTCMKTS:ORANY) vs. Telecom Italia (OTCMKTS:TIAIY)

Telecom Italia (OTCMKTS:TIAIY) and Orange (OTCMKTS:ORANY) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Telecom Italia and Orange’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
Orange	N/A	N/A	N/A

Institutional and Insider Ownership

12.2% of Orange shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Telecom Italia and Orange”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Italia	$16.95 billion	1.11	$335.95 million	N/A	N/A
Orange	$45.69 billion	1.18	$608.69 million	N/A	N/A

Orange has higher revenue and earnings than Telecom Italia.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Telecom Italia and Orange, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Italia	0	0	0	0	0.00
Orange	0	4	3	1	2.63

Volatility & Risk

Telecom Italia has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Orange has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.

Summary

Orange beats Telecom Italia on 7 of the 8 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 Orange

Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; Spain and Other European Countries; The Africa and Middle East; Enterprise; International Carriers & Shared Services; and Mobile Financial Services segments. The company offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as fixed network business solutions, including voice and data; and convergence packages. It also sells mobile handsets, mobile terminals, broadband equipment, connected devices, and accessories. In addition, the company provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, it offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors and brokers. Orange S.A. markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was founded in 1990 and is headquartered in Issy-les-Moulineaux, France.