Reviewing TIM Participacoes (NYSE:TSU) & Intelsat (I)
TIM Participacoes (NYSE: TSU) and Intelsat (NYSE:I) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitabiliy and risk.
This is a breakdown of current ratings and price targets for TIM Participacoes and Intelsat, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TIM Participacoes currently has a consensus price target of $17.73, suggesting a potential upside of 0.77%. Intelsat has a consensus price target of $4.25, suggesting a potential upside of 22.48%. Given Intelsat’s higher probable upside, analysts clearly believe Intelsat is more favorable than TIM Participacoes.
TIM Participacoes pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Intelsat does not pay a dividend. TIM Participacoes pays out 12.3% of its earnings in the form of a dividend. TIM Participacoes has increased its dividend for 4 consecutive years.
This table compares TIM Participacoes and Intelsat’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
19.5% of TIM Participacoes shares are held by institutional investors. Comparatively, 38.9% of Intelsat shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
TIM Participacoes has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Intelsat has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.
Earnings and Valuation
This table compares TIM Participacoes and Intelsat’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TIM Participacoes||$5.06 billion||1.68||$1.20 billion||$0.57||30.86|
|Intelsat||$2.17 billion||0.19||$1.61 billion||$6.72||0.52|
Intelsat has higher revenue, but lower earnings than TIM Participacoes. Intelsat is trading at a lower price-to-earnings ratio than TIM Participacoes, indicating that it is currently the more affordable of the two stocks.
TIM Participacoes beats Intelsat on 8 of the 15 factors compared between the two stocks.
About TIM Participacoes
TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.
Intelsat S.A. operates in satellite services business. The Company provides satellite services to its communications customers around the world. It provides communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations and Internet service providers (ISPs). The Company is also a provider of commercial satellite communication services to the United States Government and other select military organizations and their contractors. The Company focuses on business-to-business services, indirectly enable enterprise, government and consumer applications through its customers. The Company has operations in North America, Europe, Latin America and Caribbean, Africa and Middle East, and Asia Pacific.
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