Reviewing Axtel SAB (OTCMKTS:AXTLF) & Deutsche Telekom (OTCMKTS:DTEGY)

Axtel SAB (OTCMKTS:AXTLF) and Deutsche Telekom (OTCMKTS:DTEGY) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Axtel SAB and Deutsche Telekom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axtel SAB	0	1	0	0	2.00
Deutsche Telekom	0	1	1	4	3.50

Given Axtel SAB’s higher possible upside, equities research analysts clearly believe Axtel SAB is more favorable than Deutsche Telekom.

Profitability

This table compares Axtel SAB and Deutsche Telekom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axtel SAB	N/A	N/A	N/A
Deutsche Telekom	10.67%	10.10%	3.25%

Risk and Volatility

Axtel SAB has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Axtel SAB and Deutsche Telekom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axtel SAB	N/A	N/A	N/A	N/A	N/A
Deutsche Telekom	$125.29 billion	1.44	$12.13 billion	$2.78	13.03

Deutsche Telekom has higher revenue and earnings than Axtel SAB.

Summary

Deutsche Telekom beats Axtel SAB on 7 of the 9 factors compared between the two stocks.

About Axtel SAB

AXTEL SAB de CV engages in the provision of public telecommunication services. It operates through the following segments: Business Operation and Government. The Business Operation segment offers communication services and value-added services, such as information, data and internet technologies for both local and international businesses. The Government segment provides services through the company’s network and infrastructure for the federal, state and municipal governments. The company was founded on July 22, 1994 and is headquartered in San Pedro Garza Garcia, Mexico.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.