Magyar Telekom Tavkozlesi Nyrt (OTCMKTS:MYTAY) and Tele2 (OTCMKTS:TLTZY) Financial Review

Magyar Telekom Tavkozlesi Nyrt (OTCMKTS:MYTAY) and Tele2 (OTCMKTS:TLTZY) are both mid-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Dividends

Magyar Telekom Tavkozlesi Nyrt pays an annual dividend of $1.14 per share and has a dividend yield of 4.3%. Tele2 pays an annual dividend of $0.23 per share and has a dividend yield of 3.2%. Magyar Telekom Tavkozlesi Nyrt pays out 43.7% of its earnings in the form of a dividend. Tele2 pays out 88.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Magyar Telekom Tavkozlesi Nyrt is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Magyar Telekom Tavkozlesi Nyrt and Tele2″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magyar Telekom Tavkozlesi Nyrt	$2.65 billion	1.91	$426.05 million	$2.61	10.07
Tele2	$2.80 billion	3.47	$366.10 million	$0.26	27.31

Magyar Telekom Tavkozlesi Nyrt has higher earnings, but lower revenue than Tele2. Magyar Telekom Tavkozlesi Nyrt is trading at a lower price-to-earnings ratio than Tele2, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Magyar Telekom Tavkozlesi Nyrt and Tele2’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magyar Telekom Tavkozlesi Nyrt	18.09%	20.86%	11.90%
Tele2	13.20%	18.01%	5.98%

Volatility and Risk

Magyar Telekom Tavkozlesi Nyrt has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Tele2 has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Magyar Telekom Tavkozlesi Nyrt and Tele2, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magyar Telekom Tavkozlesi Nyrt	0	0	0	0	0.00
Tele2	0	0	0	1	4.00

Summary

Magyar Telekom Tavkozlesi Nyrt beats Tele2 on 7 of the 13 factors compared between the two stocks.

About Magyar Telekom Tavkozlesi Nyrt

Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság provides fixed-line and mobile telecommunication services for residential and business customers in Hungary, Bulgaria, Romania, and the Republic of North Macedonia. It operates through MT-Hungary and North Macedonia segments. The company offers TV distribution, information communication, and system integration services; mobile telecommunication services, such as prepaid and postpaid plans, TV, broadband, and phone services; and sells telecommunications network and equipment. It also provides mobile services comprising mobile tariff plans, mobilnet, and roaming; IT services, including modern office, business support and security, communication solutions, IT devices, and servers and data pack services; and IoT services and data transmission solutions. In addition, the company offers fixed line wholesale services comprising access, IP and data, voice, and TV services; mobile wholesale services, such as mobile interconnect and interworking products, and roaming services; and international wholesale voice and data services. Further, it provides enterprise solutions consisting of connectivity solutions, hybrid infrastructure, security, and business services. Additionally, the company offers system integration and IT services, as well as operates as an interactive service provider of telecommunications applications. It provides its services under the Telekom brand. The company was incorporated in 1991 and is headquartered in Budapest, Hungary. Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság operates as a subsidiary of Deutsche Telekom Europe B.V.

About Tele2

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.