Head-To-Head Contrast: Telefônica Brasil (NYSE:VIV) and Crexendo (NASDAQ:CXDO)

Telefônica Brasil (NYSE:VIV) and Crexendo (NASDAQ:CXDO) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Valuation & Earnings

This table compares Telefônica Brasil and Crexendo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefônica Brasil	$10.44 billion	1.33	$1.01 billion	$0.63	13.28
Crexendo	$53.20 million	1.53	-$360,000.00	$0.05	61.20

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Telefônica Brasil and Crexendo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefônica Brasil	0	3	3	0	2.50
Crexendo	0	0	2	0	3.00

Telefônica Brasil presently has a consensus price target of $11.35, indicating a potential upside of 35.68%. Crexendo has a consensus price target of $6.38, indicating a potential upside of 108.33%. Given Crexendo’s stronger consensus rating and higher probable upside, analysts plainly believe Crexendo is more favorable than Telefônica Brasil.

Institutional & Insider Ownership

5.2% of Telefônica Brasil shares are owned by institutional investors. Comparatively, 9.5% of Crexendo shares are owned by institutional investors. 56.6% of Crexendo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Telefônica Brasil and Crexendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefônica Brasil	9.63%	7.39%	4.21%
Crexendo	3.01%	10.88%	8.59%

Risk & Volatility

Telefônica Brasil has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Summary

Crexendo beats Telefônica Brasil on 9 of the 14 factors compared between the two stocks.

About Telefônica Brasil

Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as mobile value-added and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.

About Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.