Financial Analysis: Telkom SA Ltd ADS (TLKGY) versus ADTRAN (ADTN)
Telkom SA Ltd ADS (OTCMKTS:TLKGY) and ADTRAN (NASDAQ:ADTN) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Institutional & Insider Ownership
93.9% of ADTRAN shares are held by institutional investors. 2.5% of ADTRAN shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Telkom SA Ltd ADS and ADTRAN, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telkom SA Ltd ADS||0||0||0||0||N/A|
ADTRAN has a consensus price target of $19.33, indicating a potential upside of 31.79%. Given ADTRAN’s higher possible upside, analysts clearly believe ADTRAN is more favorable than Telkom SA Ltd ADS.
This table compares Telkom SA Ltd ADS and ADTRAN’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telkom SA Ltd ADS||N/A||N/A||N/A|
Volatility & Risk
Telkom SA Ltd ADS has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, ADTRAN has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Valuation & Earnings
This table compares Telkom SA Ltd ADS and ADTRAN’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Telkom SA Ltd ADS||$3.17 billion||0.80||$235.61 million||N/A||N/A|
|ADTRAN||$529.28 million||1.32||-$19.34 million||($0.47)||-31.21|
Telkom SA Ltd ADS has higher revenue and earnings than ADTRAN.
Telkom SA Ltd ADS pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. ADTRAN pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. ADTRAN pays out -76.6% of its earnings in the form of a dividend.
ADTRAN beats Telkom SA Ltd ADS on 7 of the 13 factors compared between the two stocks.
Telkom SA Ltd ADS Company Profile
Telkom SA SOC Limited provides information and communications technology services to residential, business, government, wholesale, corporate, and mobile customers in South Africa and internationally. The company offers fixed-line retail voice services using public switched telephone network lines, which include integrated services digital network lines, value-added voice services, and calling plans; and interconnection services, such as terminating and transiting traffic from South African and international operators, as well as transiting traffic from mobile to international destinations. It also provides fixed-line data services comprising data transmission services, such as point-to-point leased lines, asymmetrical digital subscriber line services, packet-based services, managed data networking services, and Internet access and related information technology services. In addition, the company offers wideband code division multiple access services, including fixed voice, data, and nomadic voice services; mobile communication services consisting of voice and data services, and handset sales under the Telkom Mobile brand name; and turnkey property and tower management solutions. Further, it is involved in the rental, sale, and service of fixed-line customer premises equipment for voice and data needs that consists of PABX, computers, routers, modems, telephone handsets, and other ancillary equipment; and provision of directory and wireless data services. The company was formerly known as Telkom SA Limited and changed its name to Telkom SA SOC Limited in October 2012. Telkom SA SOC Limited was founded in 1991 and is headquartered in Centurion, South Africa.
ADTRAN Company Profile
ADTRAN, Inc. provides networking and communications equipment worldwide. The company operates through two segments, Network Solutions and Services & Support. It offers access and aggregation solutions, including network management and subscriber services control and orchestration software within a SD-access architecture; SDN-controlled programmable network elements; fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; fiber to the distribution point optical network units; optical line terminals; optical networking edge aggregation; and IP digital subscriber line access multiplexers. The company's access and aggregation solutions also comprise cabinet and outside-plant enclosures and services; pluggable optical transceivers, cables, and other miscellaneous materials; and other products and services. In addition, it provides customer devices comprising broadband customer premise solutions, such as passive optical network and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential and business gateways; Wi-Fi access points and related powering and switching infrastructure; enterprise session border controllers; carrier Ethernet services termination devices; voice over Internet protocol media gateways; and other products and services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; HDSL, ADSL, and other technologies; and other products and services. Additionally, it provides planning, engineering, program management, maintenance, support, installation, commissioning, and implementation services. The company serves communications service providers, distributed enterprises and small and medium-sized businesses, public and private enterprises, and individual users. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.
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