Analyzing Telecom Argentina (NYSE:TEO) & Orange (OTC:ORANY)

Telecom Argentina (NYSE:TEO) and Orange (OTC:ORANY) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Earnings and Valuation

This table compares Telecom Argentina and Orange”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Argentina	$7.85 billion	0.64	-$979.37 million	($0.18)	-64.54
Orange	$43.57 billion	0.70	$2.35 billion	N/A	N/A

Orange has higher revenue and earnings than Telecom Argentina.

Insider and Institutional Ownership

12.2% of Orange shares are owned by institutional investors. 1.0% of Telecom Argentina shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Telecom Argentina and Orange, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Argentina	2	0	0	0	1.00
Orange	0	1	0	0	2.00

Telecom Argentina presently has a consensus target price of $7.20, indicating a potential downside of 38.03%. Given Telecom Argentina’s higher probable upside, analysts clearly believe Telecom Argentina is more favorable than Orange.

Profitability

This table compares Telecom Argentina and Orange’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Argentina	-1.91%	-1.26%	-0.59%
Orange	N/A	N/A	N/A

Volatility & Risk

Telecom Argentina has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Orange has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Summary

Orange beats Telecom Argentina on 8 of the 11 factors compared between the two stocks.

About Telecom Argentina

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services. The company offers mobile telecommunications services, including voice communications, high-speed mobile Internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, Modems MiFi and wingles, and smart watches. It also internet connectivity products, including virtual private network services, traditional Internet protocol links, and other products; and programming and other cable television services. In addition, the company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it provides Infrastructure, interconnection, datacenter, Internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric Internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service; and management and administration services. The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018. Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.

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.