Head-To-Head Review: TELUS (NYSE:TU) and Telecom Italia (OTCMKTS:TIIAY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TELUS	5.42%	8.42%	2.38%
Telecom Italia	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for TELUS and Telecom Italia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS	1	6	3	0	2.20
Telecom Italia	0	3	1	1	2.60

TELUS presently has a consensus price target of $17.63, indicating a potential upside of 45.96%. Given TELUS’s higher probable upside, research analysts plainly believe TELUS is more favorable than Telecom Italia.

Insider and Institutional Ownership

49.4% of TELUS shares are held by institutional investors. 0.1% of TELUS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares TELUS and Telecom Italia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS	$14.71 billion	1.27	$796.57 million	$0.52	23.22
Telecom Italia	$15.88 billion	1.04	-$660.08 million	N/A	N/A

TELUS has higher earnings, but lower revenue than Telecom Italia.

Risk and Volatility

TELUS has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Summary

TELUS beats Telecom Italia on 10 of the 13 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 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.