Analyzing Orange (OTC:ORANY) & Tele2 AB (publ) (OTCMKTS:TLTZY)

Orange (OTC:ORANY) and Tele2 AB (publ) (OTCMKTS:TLTZY) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Dividends

Orange pays an annual dividend of $0.42 per share and has a dividend yield of 3.3%. Tele2 AB (publ) pays an annual dividend of $0.16 per share and has a dividend yield of 2.4%. Tele2 AB (publ) pays out 61.5% of its earnings in the form of a dividend.

Profitability

This table compares Orange and Tele2 AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orange	N/A	N/A	N/A
Tele2 AB (publ)	13.05%	17.50%	5.78%

Insider and Institutional Ownership

12.2% of Orange shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Orange and Tele2 AB (publ)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange	$43.57 billion	0.77	$2.35 billion	N/A	N/A
Tele2 AB (publ)	$2.80 billion	3.33	$366.10 million	$0.26	26.18

Orange has higher revenue and earnings than Tele2 AB (publ).

Volatility and Risk

Orange has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Tele2 AB (publ) has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Orange and Tele2 AB (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange	0	1	0	0	2.00
Tele2 AB (publ)	0	0	0	1	4.00

Summary

Tele2 AB (publ) beats Orange on 7 of the 12 factors compared between the two stocks.

About Orange

Orange S.A. provides fixed telephony, mobile telecommunication, data transmission, and other value-added services to individuals, professionals, and large companies in France and internationally. It offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as B2B fixed solutions and networks services, including voice and data services. The company also sells handsets, broadband equipment, connected devices, and accessories. In addition, it provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, the company offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors, brokers, and operators. It markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was incorporated in 1991 and is headquartered in Issy-les-Moulineaux, France.

About Tele2 AB (publ)

Tele2 AB (publ) provides fixed and mobile connectivity, handset related data services, and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. The company also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, it offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. The company was incorporated in 1990 and is headquartered in Kista, Sweden.