Comparing SES (OTCMKTS:SGBAF) and TELUS (NYSE:TU)

TELUS (NYSE:TU) and SES (OTCMKTS:SGBAF) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

49.4% of TELUS shares are held by institutional investors. 0.1% of TELUS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for TELUS and SES, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS	5	9	3	0	1.88
SES	1	2	1	0	2.00

TELUS currently has a consensus target price of $15.00, suggesting a potential upside of 67.69%. Given TELUS’s higher probable upside, equities research analysts plainly believe TELUS is more favorable than SES.

Risk and Volatility

TELUS has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, SES has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares TELUS and SES”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS	$20.21 billion	0.70	$796.57 million	($0.94)	-9.52
SES	$2.97 billion	0.87	-$107.48 million	($0.69)	-6.70

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

Profitability

This table compares TELUS and SES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS	-10.27%	7.47%	2.00%
SES	-6.62%	-6.35%	-1.30%

Summary

TELUS beats SES on 8 of the 14 factors compared between the two stocks.

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.

About SES

SES S.A. provides satellite-based data transmission capacity and ancillary services worldwide. The company offers content connectivity solutions, including network spanning satellite and ground infrastructure to create, deliver, and manage video and data solutions. It also provides data connectivity services through its fleet of geostationary earth orbit and medium earth orbit satellites to the aviation, cloud, cruise, energy, government, maritime, and telco and mobile network operator industries. In addition, the company offers video services, which includes end-to-end managed services to audience; and provides multi-screen and multi-device viewing experiences on linear channels, video-on-demand, streaming platforms, and social media sites for broadcasters, platform operators, and sports organizations. Further, it provides linear video aggregation and distribution, such as direct-to-home, direct-to-cable, and internet protocol TV households; channel management solutions comprising playout; and live feeds and redundancy features. The company was formerly known as SES Global SA and changed its name to SES S.A. in December 2006. SES S.A. was founded in 1985 and is headquartered in Betzdorf, Luxembourg.