Reviewing BT Group (OTCMKTS:BTGOF) & TALKTALK TELECO/ADR (OTCMKTS:TKTCY)

TALKTALK TELECO/ADR (OTCMKTS:TKTCY) and BT Group (OTCMKTS:BTGOF) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for TALKTALK TELECO/ADR and BT Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TALKTALK TELECO/ADR	0	0	0	0	0.00
BT Group	2	1	0	0	1.33

Dividends

TALKTALK TELECO/ADR pays an annual dividend of $0.11 per share and has a dividend yield of 1.6%. BT Group pays an annual dividend of $0.10 per share and has a dividend yield of 3.7%. TALKTALK TELECO/ADR pays out 32.4% of its earnings in the form of a dividend. BT Group pays out 40.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

38.1% of BT Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares TALKTALK TELECO/ADR and BT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TALKTALK TELECO/ADR	N/A	N/A	N/A
BT Group	N/A	N/A	N/A

Earnings & Valuation

This table compares TALKTALK TELECO/ADR and BT Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TALKTALK TELECO/ADR	$1.99 billion	0.78	$194.52 million	$0.34	20.00
BT Group	N/A	N/A	N/A	$0.24	10.88

TALKTALK TELECO/ADR has higher revenue and earnings than BT Group. BT Group is trading at a lower price-to-earnings ratio than TALKTALK TELECO/ADR, indicating that it is currently the more affordable of the two stocks.

Summary

TALKTALK TELECO/ADR beats BT Group on 4 of the 7 factors compared between the two stocks.

About TALKTALK TELECO/ADR

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

About BT Group

BT Group plc provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through Consumer, Enterprise, Global, and Openreach segments. The company builds, owns, and operates fixed and mobile networks; and designs, builds, markets, sells, and supports network access, connectivity, and related solutions. It also offers landline, mobile, and broadband services; home and cyber security solutions; and TV and cloud gaming entertainment services under the BT, EE, and Plusnet brands. In addition, the company provides connectivity, networking, cyber security, collaboration tools, cloud connectivity, and cloud services for small, medium, and large corporate businesses; public sector; and government. Further, it engages in the wholesale of mobile network capabilities, voice services, broadband, ethernet, and other connectivity solutions on contract basis; and offers access to its fixed access network infrastructure for homes, schools, hospitals, libraries, government buildings, and businesses. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.