Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (OTCMKTS:TLKMF) & Deutsche Telekom (OTCMKTS:DTEGY) Financial Survey

Deutsche Telekom (OTCMKTS:DTEGY) and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (OTCMKTS:TLKMF) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Profitability

This table compares Deutsche Telekom and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Telekom	7.18%	11.11%	3.52%
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Deutsche Telekom and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Telekom	0	1	2	1	3.00
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk	0	0	0	0	0.00

Insider and Institutional Ownership

15.6% of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Deutsche Telekom and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Telekom	$134.70 billion	1.24	$10.87 billion	$2.07	16.49
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk	N/A	N/A	N/A	C$148.16	0.00

Deutsche Telekom has higher revenue and earnings than Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk is trading at a lower price-to-earnings ratio than Deutsche Telekom, indicating that it is currently the more affordable of the two stocks.

Dividends

Deutsche Telekom pays an annual dividend of $1.88 per share and has a dividend yield of 5.5%. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk pays an annual dividend of C$64.37 per share and has a dividend yield of 42,910.9%. Deutsche Telekom pays out 90.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk pays out 43.4% of its earnings in the form of a dividend. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Deutsche Telekom beats Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk on 8 of the 12 factors compared between the two stocks.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.

About Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.