Analyzing PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) & TELUS (NYSE:TU)

TELUS (NYSE:TU) and PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TELUS and PT Telekomunikasi Indonesia, Tbk, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS	0	7	1	0	2.13
PT Telekomunikasi Indonesia, Tbk	1	1	0	0	1.50

TELUS currently has a consensus price target of $21.50, indicating a potential upside of 37.07%. Given TELUS’s stronger consensus rating and higher possible upside, research analysts clearly believe TELUS is more favorable than PT Telekomunikasi Indonesia, Tbk.

Volatility and Risk

TELUS has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, PT Telekomunikasi Indonesia, Tbk has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Dividends

TELUS pays an annual dividend of $1.21 per share and has a dividend yield of 7.7%. PT Telekomunikasi Indonesia, Tbk pays an annual dividend of $1.05 per share and has a dividend yield of 5.7%. TELUS pays out 263.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PT Telekomunikasi Indonesia, Tbk pays out 73.4% of its earnings in the form of a dividend. TELUS has increased its dividend for 5 consecutive years. TELUS is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares TELUS and PT Telekomunikasi Indonesia, Tbk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS	4.67%	9.10%	2.59%
PT Telekomunikasi Indonesia, Tbk	15.49%	14.72%	7.94%

Institutional and Insider Ownership

49.4% of TELUS shares are owned by institutional investors. 0.1% of TELUS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares TELUS and PT Telekomunikasi Indonesia, Tbk”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS	$14.88 billion	1.62	$724.69 million	$0.46	34.10
PT Telekomunikasi Indonesia, Tbk	$9.45 billion	1.94	$1.47 billion	$1.43	12.91

PT Telekomunikasi Indonesia, Tbk has lower revenue, but higher earnings than TELUS. PT Telekomunikasi Indonesia, Tbk is trading at a lower price-to-earnings ratio than TELUS, indicating that it is currently the more affordable of the two stocks.

Summary

TELUS beats PT Telekomunikasi Indonesia, Tbk on 10 of the 17 factors compared between the two stocks.

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.

About PT Telekomunikasi Indonesia, Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.