Liberty Global (NASDAQ:LBTYA) & PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) Critical Contrast

PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) and Liberty Global (NASDAQ:LBTYA) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for PT Telekomunikasi Indonesia, Tbk and Liberty Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Telekomunikasi Indonesia, Tbk	1	1	0	0	1.50
Liberty Global	2	6	2	0	2.00

Liberty Global has a consensus price target of $14.26, indicating a potential upside of 25.28%. Given Liberty Global’s stronger consensus rating and higher possible upside, analysts plainly believe Liberty Global is more favorable than PT Telekomunikasi Indonesia, Tbk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PT Telekomunikasi Indonesia, Tbk	15.49%	14.72%	7.94%
Liberty Global	-60.38%	-22.64%	-10.77%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Telekomunikasi Indonesia, Tbk	$9.45 billion	1.93	$1.47 billion	$1.43	12.85
Liberty Global	$4.34 billion	0.89	$1.59 billion	($9.77)	-1.16

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

Volatility & Risk

PT Telekomunikasi Indonesia, Tbk has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Liberty Global has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

37.2% of Liberty Global shares are owned by institutional investors. 11.5% of Liberty Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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.

About Liberty Global

Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.