Analyzing Singapore Telecommunications (OTCMKTS:SGAPY) and Telefonica (NYSE:TEF)

Singapore Telecommunications (OTCMKTS:SGAPY) and Telefonica (NYSE:TEF) are both large-cap utilities companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Singapore Telecommunications and Telefonica, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Singapore Telecommunications	0	0	0	0	0.00
Telefonica	5	4	0	0	1.44

Telefonica has a consensus target price of $4.02, suggesting a potential upside of 5.38%. Given Telefonica’s stronger consensus rating and higher possible upside, analysts clearly believe Telefonica is more favorable than Singapore Telecommunications.

Valuation & Earnings

This table compares Singapore Telecommunications and Telefonica”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Singapore Telecommunications	$10.57 billion	6.02	$3.00 billion	N/A	N/A
Telefonica	$40.55 billion	0.53	-$53.02 million	($0.41)	-9.29

Singapore Telecommunications has higher earnings, but lower revenue than Telefonica.

Institutional and Insider Ownership

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

Dividends

Singapore Telecommunications pays an annual dividend of $1.22 per share and has a dividend yield of 3.2%. Telefonica pays an annual dividend of $0.25 per share and has a dividend yield of 6.6%. Telefonica pays out -61.0% of its earnings in the form of a dividend.

Profitability

This table compares Singapore Telecommunications and Telefonica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Singapore Telecommunications	N/A	N/A	N/A
Telefonica	-5.23%	8.54%	1.96%

Risk & Volatility

Singapore Telecommunications has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Telefonica has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Summary

Telefonica beats Singapore Telecommunications on 9 of the 13 factors compared between the two stocks.

About Singapore Telecommunications

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, China, and internationally. The company operates through Optus, Singtel Singapore, NCS, Digital InfraCo, and Corporate segments. The company provides mobile, equipment sales, fixed voice and data, satellite, ICT and managed services; mobile, fixed voice and data, pay television, content and digital services, ICT as well as equipment sales in Singapore; and provides differentiated and end-to-end technology services to clients through its Gov+, Enterprise, and Telco+ strategic business groups with its NEXT capabilities in digital, data, cloud and platforms, as well as offers applications, infrastructure, engineering and cyber. It offers regional data centre services under Nxera; satellite carrier services; and Paragon, Singtel’s all-in-one digital acceleration platform for 5G multi-access edge compute and cloud orchestration. The company was incorporated in 1992 and is headquartered in Singapore.

About Telefonica

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.