Proximus (BGAOY) and The Competition Critical Analysis

Proximus (OTCMKTS:BGAOY) is one of 144 publicly-traded companies in the “Telecom Services” industry, but how does it compare to its peers? We will compare Proximus to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Proximus	N/A	N/A	N/A
Proximus Competitors	-6.68%	-17.44%	1.08%

Dividends

Proximus pays an annual dividend of $0.15 per share and has a dividend yield of 9.5%. Proximus pays out 34.1% of its earnings in the form of a dividend. As a group, “Telecom Services” companies pay a dividend yield of 15.0% and pay out 41.9% of their earnings in the form of a dividend.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Proximus	N/A	N/A	3.61
Proximus Competitors	$7.90 billion	$752.56 million	-167.86

Proximus’ peers have higher revenue and earnings than Proximus. Proximus 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Proximus and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Proximus	1	6	2	0	2.11
Proximus Competitors	707	2150	3971	109	2.50

As a group, “Telecom Services” companies have a potential upside of 64.47%. Given Proximus’ peers stronger consensus rating and higher possible upside, analysts clearly believe Proximus has less favorable growth aspects than its peers.

Institutional & Insider Ownership

0.0% of Proximus shares are owned by institutional investors. Comparatively, 29.2% of shares of all “Telecom Services” companies are owned by institutional investors. 32.4% of shares of all “Telecom Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Proximus peers beat Proximus on 9 of the 13 factors compared.

About Proximus

Proximus PLC provides digital services and communication solutions in Belgium and internationally. It operates through Domestic, International Carrier Services, and TeleSign segments. The company offers fixed and mobile telephony, internet, and television services to residential customers and small businesses, and ICT services to residential, business, and telecom wholesale markets. It also provides managed and platform, integrating networking, cloud, cybersecurity, business application, and data and artificial intelligence services. In addition, the company offers international delivery authentication and digital identity services to internet brands, digital champions, and cloud native businesses. It offers its products and services under Proximus, Scarlet, Mobile Vikings, Tango, Telindus, and Telindus Netherlands brands. The company was formerly known as Belgacom SA and changed its name to Proximus PLC in June 2015. Proximus PLC was founded in 1930 and is headquartered in Brussels, Belgium.