Telefonica Brasil (NYSE:VIV – Get Free Report) and Liberty Global (NASDAQ:LBTYA – Get Free Report) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Earnings and Valuation
This table compares Telefonica Brasil and Liberty Global”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telefonica Brasil | $10.36 billion | 1.92 | $1.03 billion | $0.62 | 19.67 |
| Liberty Global | $4.34 billion | 0.86 | $1.59 billion | ($9.77) | -1.13 |
Institutional and Insider Ownership
5.2% of Telefonica Brasil shares are owned by institutional investors. Comparatively, 37.2% of Liberty Global shares are owned by institutional investors. 11.5% of Liberty Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Telefonica Brasil and Liberty Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telefonica Brasil | 10.13% | 8.32% | 4.56% |
| Liberty Global | -60.38% | -22.64% | -10.77% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Telefonica Brasil and Liberty Global, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telefonica Brasil | 1 | 4 | 3 | 0 | 2.25 |
| Liberty Global | 2 | 6 | 2 | 0 | 2.00 |
Telefonica Brasil currently has a consensus price target of $12.53, suggesting a potential upside of 2.71%. Liberty Global has a consensus price target of $14.26, suggesting a potential upside of 29.61%. Given Liberty Global’s higher possible upside, analysts clearly believe Liberty Global is more favorable than Telefonica Brasil.
Risk & Volatility
Telefonica Brasil has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Liberty Global has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Summary
Telefonica Brasil beats Liberty Global on 9 of the 14 factors compared between the two stocks.
About Telefonica Brasil
Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as mobile value-added and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.
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.
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