BCE (NYSE:BCE) and Telecom Italia (OTCMKTS:TIIAY) Critical Analysis

Telecom Italia (OTCMKTS:TIIAY) and BCE (NYSE:BCE) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider & Institutional Ownership

41.5% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Telecom Italia and BCE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Italia	0	2	0	3	3.20
BCE	4	1	6	2	2.46

BCE has a consensus price target of $29.00, suggesting a potential upside of 26.90%. Given BCE’s higher possible upside, analysts plainly believe BCE is more favorable than Telecom Italia.

Risk & Volatility

Telecom Italia has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, BCE has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Earnings and Valuation

This table compares Telecom Italia and BCE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Italia	$15.88 billion	N/A	-$660.08 million	N/A	N/A
BCE	$17.82 billion	1.20	$251.05 million	$4.81	4.75

BCE has higher revenue and earnings than Telecom Italia.

Profitability

This table compares Telecom Italia and BCE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Italia	N/A	N/A	N/A
BCE	25.62%	17.35%	3.66%

Summary

BCE beats Telecom Italia on 9 of the 11 factors compared between the two stocks.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.

About BCE

BCE Inc., a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers. This segment also buys and sells local telephone, long distance, and data and other services from or to resellers and other carriers; and operates consumer electronics retail stores. The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services, and out-of-home advertising services. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.