Financial Analysis: Telefónica (NYSE:TEF) versus Pervasip (OTCMKTS:PVSP)

Telefónica (NYSE:TEF) and Pervasip (OTCMKTS:PVSP) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

1.1% of Telefónica shares are held by institutional investors. 0.0% of Telefónica shares are held by company insiders. Comparatively, 9.2% of Pervasip shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Telefónica and Pervasip”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefónica	$40.87 billion	0.66	-$965.41 million	($0.16)	-29.81
Pervasip	$15.77 million	0.09	-$2.35 million	N/A	N/A

Pervasip has lower revenue, but higher earnings than Telefónica.

Volatility and Risk

Telefónica has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Pervasip has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Telefónica and Pervasip, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefónica	1	4	0	0	1.80
Pervasip	0	0	0	0	N/A

Profitability

This table compares Telefónica and Pervasip’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefónica	-1.62%	9.18%	2.42%
Pervasip	-16.07%	N/A	-22.41%

Summary

Telefónica beats Pervasip on 7 of the 9 factors compared between the two stocks.

About Telefónica

Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, such as mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. It also provides fixed telecommunication services, including PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services, as well as leases and sells handset equipment and telephony information services. It also provides Internet and broadband multimedia services comprising internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, security, internet through fibre to the home, and voice over internet protocol services. In addition, the company offers leased line, virtual private network, fibre optics, web hosting and application, managed hosting, content delivery, outsourcing and application, desktop, and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud, advertising, big data, and digital experience services; Aura; open gateway, living apps; smart Wi-Fi, Phoenix, NT, Solar 360, and Movistar Home devices. Telefónica, S.A. was incorporated in 1924 and is headquartered in Madrid, Spain.

About Pervasip

Pervasip Corporation focuses on developing cloud-based applications to monitor and control greenhouse facilities. It intends to develop and deliver products and technologies to agricultural markets; develop scientific methods for the analysis of cannabinoids in flowers, concentrates, and edibles; and assist medical marijuana specialty production facilities to regulate, calculate proper dosage, and understand the importance of consistency in product. The company was formerly known as eLEC Communications Corp. and changed its name to Pervasip Corp. in December 2007. Pervasip Corp. was founded in 1964 and is based in White Plains, New York.