Cincinnati Bell (NYSE: CBB) and TELUS Corporation (NYSE:TU) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings for Cincinnati Bell and TELUS Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cincinnati Bell 2 2 1 0 1.80
TELUS Corporation 0 0 5 0 3.00

Cincinnati Bell currently has a consensus target price of $23.50, indicating a potential upside of 18.39%. TELUS Corporation has a consensus target price of $45.00, indicating a potential upside of 25.10%. Given TELUS Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe TELUS Corporation is more favorable than Cincinnati Bell.

Volatility & Risk

Cincinnati Bell has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, TELUS Corporation has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

85.2% of Cincinnati Bell shares are owned by institutional investors. Comparatively, 51.0% of TELUS Corporation shares are owned by institutional investors. 1.4% of Cincinnati Bell shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Cincinnati Bell and TELUS Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cincinnati Bell 6.84% -3.87% 0.70%
TELUS Corporation 9.55% 18.75% 5.44%

Earnings and Valuation

This table compares Cincinnati Bell and TELUS Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cincinnati Bell $1.17 billion 0.72 $282.90 million $1.65 12.03
TELUS Corporation $10.66 billion 2.00 $3.37 billion $1.58 22.77

TELUS Corporation has higher revenue and earnings than Cincinnati Bell. Cincinnati Bell is trading at a lower price-to-earnings ratio than TELUS Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

TELUS Corporation pays an annual dividend of $1.58 per share and has a dividend yield of 4.4%. Cincinnati Bell does not pay a dividend. TELUS Corporation pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TELUS Corporation beats Cincinnati Bell on 10 of the 16 factors compared between the two stocks.

About Cincinnati Bell

Cincinnati Bell Inc., along with its subsidiaries, provides diversified telecommunications and technology services. The Company operates through two segments: Entertainment and Communications, and IT Services and Hardware. Through its Entertainment and Communications segment, the Company provides high-speed data, video and voice solutions to consumers and businesses over fiber network and a legacy copper network. The IT Services and Hardware segments operates through its subsidiary, Cincinnati Bell Technology Solutions Inc. (CBTS), which is engaged in the sale and service of end-to-end communications and information technology (IT) systems and solutions for business customers across the United States. The Company has interest in CyrusOne Inc., which operates carrier-neutral data center colocation business.

About TELUS Corporation

TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.

Receive News & Ratings for Cincinnati Bell Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cincinnati Bell Inc and related companies with Analyst Ratings Network's FREE daily email newsletter.