Head to Head Analysis: Telefónica (NYSE:TEF) versus Orbital Tracking (OTCMKTS:TRKK)

Telefónica (NYSE:TEF) and Orbital Tracking (OTCMKTS:TRKK) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Telefónica and Orbital Tracking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefónica	4.38%	7.32%	2.09%
Orbital Tracking	-31.38%	-116.51%	-62.65%

Earnings & Valuation

This table compares Telefónica and Orbital Tracking’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefónica	$42.14 billion	0.54	$2.12 billion	$0.29	13.64
Orbital Tracking	$5.73 million	0.58	-$1.20 million	($1.33)	-1.39

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

Risk and Volatility

Telefónica has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Orbital Tracking has a beta of 3.27, suggesting that its stock price is 227% more volatile than the S&P 500.

Institutional & Insider Ownership

1.2% of Telefónica shares are held by institutional investors. 0.0% of Telefónica shares are held by insiders. Comparatively, 15.6% of Orbital Tracking shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Telefónica and Orbital Tracking, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefónica	2	3	1	0	1.83
Orbital Tracking	0	0	0	0	N/A

Summary

Telefónica beats Orbital Tracking on 9 of the 12 factors compared between the two stocks.

About Telefónica

Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company's mobile and related services and products comprise mobile voice, value added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services, as well as leases and sells handset equipment. The company also provides Internet and broadband multimedia services comprising Internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, high-speed Internet through fibre to the home, and voice over Internet protocol services. In addition, it offers leased line, virtual private network, fibre optics, web hosting and application, managed hosting, content delivery, outsourcing and consultancy, desktop, and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud, advertising, big data, and digital experience services; virtual assistants; and Movistar Home devices. The company was incorporated in 1924 and is headquartered in Madrid, Spain.

About Orbital Tracking

Orbital Tracking Corp., through its subsidiaries, develops, distributes, and resells satellite enabled communications hardware; and provides products, airtime, and related services to customers in the United States and internationally. The company also provides equipment and airtime for use on various satellite networks, as well as short-term rental service for customers who want to use its equipment for a limited time period. In addition, it offers a range of portable satellite voice, data, and tracking solutions, including handheld satellite phones, personal and asset tracking devices, portable high speed broadband terminals, satellite Wi-Fi hotspots. Further, the company provides two-way voice and data transmissions services, as well as prepaid and monthly contract satellite communications airtime options. Additionally, it operates mapping and tracking portals orbitaltrack.com and gtctrack.com, which display real-time asset location reports, including position, speed, altitude, and heading, as well as past location and movement history reports on various tracking devices. The company is also developing a dual-mode tracker utilizes both cellular and satellite technology to provide tracking, automatically switching between the cellular and satellite links for use in populated and remote areas, including trans-oceanic routes. It serves customers, including businesses, U.S. and foreign governments, non-governmental and charitable organizations, military users, resellers, and private individuals. The company was formerly known as Great West Resources, Inc. and changed its name to Orbital Tracking Corp. in January 2015. Orbital Tracking Corp. was incorporated in 1997 and is based in Aventura, Florida.