Head-To-Head Analysis: PLDT (PHI) & Its Competitors

PLDT (NYSE:PHI) is one of 203 public companies in the “Diversified Telecommunication Services” industry, but how does it contrast to its peers? We will compare PLDT to similar companies based on the strength of its institutional ownership, valuation, profitability, risk, dividends, analyst recommendations and earnings.

Dividends

PLDT pays an annual dividend of $1.09 per share and has a dividend yield of 6.0%. PLDT pays out 49.1% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.6% and pay out 33.0% of their earnings in the form of a dividend. PLDT lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares PLDT and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PLDT	12.81%	26.76%	5.36%
PLDT Competitors	-11.85%	-217.35%	-3.33%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PLDT and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLDT	0	4	0	0	2.00
PLDT Competitors	1753	5343	7763	384	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 20.59%. Given PLDT’s peers stronger consensus rating and higher probable upside, analysts clearly believe PLDT has less favorable growth aspects than its peers.

Volatility & Risk

PLDT has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, PLDT’s peers have a beta of -4.90, suggesting that their average stock price is 590% less volatile than the S&P 500.

Institutional & Insider Ownership

2.3% of PLDT shares are held by institutional investors. Comparatively, 32.5% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 0.7% of PLDT shares are held by insiders. Comparatively, 18.3% of shares of all “Diversified Telecommunication Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares PLDT and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PLDT	$3.80 billion	$498.72 million	8.18
PLDT Competitors	$24.18 billion	$893.66 million	-168.62

PLDT’s peers have higher revenue and earnings than PLDT. PLDT is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

PLDT peers beat PLDT on 10 of the 15 factors compared.

PLDT Company Profile

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.