Telecom Italia (NYSE: TI) and Neustar (NYSE:NSR) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Analyst Ratings

This is a summary of current recommendations for Telecom Italia and Neustar, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Italia 1 2 1 0 2.00
Neustar 0 1 0 0 2.00

Telecom Italia presently has a consensus price target of $1.80, indicating a potential downside of 79.82%. Neustar has a consensus price target of $29.00, indicating a potential upside of Infinity. Given Neustar’s higher possible upside, analysts plainly believe Neustar is more favorable than Telecom Italia.

Profitability

This table compares Telecom Italia and Neustar’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
Neustar 15.50% 19.28% 8.80%

Earnings and Valuation

This table compares Telecom Italia and Neustar’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telecom Italia $21.06 billion 0.90 $2.00 billion N/A N/A
Neustar N/A N/A N/A $3.27 N/A

Telecom Italia has higher revenue and earnings than Neustar.

Institutional and Insider Ownership

0.8% of Telecom Italia shares are owned by institutional investors. Comparatively, 88.8% of Neustar shares are owned by institutional investors. 2.9% of Neustar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Neustar beats Telecom Italia on 6 of the 8 factors compared between the two stocks.

About Telecom Italia

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

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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