Telenor ASA (OTCMKTS:TELNY – Get Free Report) and Grupo Televisa (NYSE:TV – Get Free Report) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Volatility and Risk
Telenor ASA has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Grupo Televisa has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.
Insider & Institutional Ownership
55.8% of Grupo Televisa shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Telenor ASA | 1 | 4 | 0 | 0 | 1.80 |
Grupo Televisa | 0 | 3 | 2 | 0 | 2.40 |
Grupo Televisa has a consensus target price of $4.70, indicating a potential upside of 68.76%. Given Grupo Televisa’s stronger consensus rating and higher possible upside, analysts plainly believe Grupo Televisa is more favorable than Telenor ASA.
Valuation and Earnings
This table compares Telenor ASA and Grupo Televisa”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Telenor ASA | $7.44 billion | 3.12 | $1.71 billion | $0.74 | 22.90 |
Grupo Televisa | $3.42 billion | 0.45 | -$453.78 million | ($0.75) | -3.71 |
Telenor ASA has higher revenue and earnings than Grupo Televisa. Grupo Televisa is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.
Dividends
Telenor ASA pays an annual dividend of $0.67 per share and has a dividend yield of 4.0%. Grupo Televisa pays an annual dividend of $0.08 per share and has a dividend yield of 2.9%. Telenor ASA pays out 90.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Grupo Televisa pays out -10.7% of its earnings in the form of a dividend.
Profitability
This table compares Telenor ASA and Grupo Televisa’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Telenor ASA | 13.67% | 14.56% | 5.03% |
Grupo Televisa | -13.56% | -6.95% | -3.20% |
Summary
Telenor ASA beats Grupo Televisa on 9 of the 15 factors compared between the two stocks.
About Telenor ASA
Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.
About Grupo Televisa
Grupo Televisa, S.A.B., together with its subsidiaries, owns and operates cable companies and provides direct-to-home satellite pay television system in Mexico and the United States. It operates through three segments: Cable, Sky, and Other Businesses. The Cable segment operates cable multiple system that provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone and mobile services subscription, as well as local and national advertising services; and telecommunication facilities, which offers data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Other Businesses segment is involved in the sports and show business promotion, soccer, publishing and publishing distribution, and gaming, as well as provides transmission concessions and facilities. The company was founded in 1969 and is headquartered in Mexico City, Mexico.
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