IDT Corporation (IDT) versus TELUS Corporation (TU) Critical Analysis
IDT Corporation (NYSE: IDT) and TELUS Corporation (NYSE:TU) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Risk and Volatility
IDT Corporation has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, TELUS Corporation has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
IDT Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 5.2%. TELUS Corporation pays an annual dividend of $1.46 per share and has a dividend yield of 4.0%. IDT Corporation pays out 59.8% of its earnings in the form of a dividend. TELUS Corporation pays out 92.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. IDT Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and target prices for IDT Corporation and TELUS Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TELUS Corporation has a consensus target price of $45.00, suggesting a potential upside of 24.24%. Given TELUS Corporation’s higher possible upside, analysts plainly believe TELUS Corporation is more favorable than IDT Corporation.
Insider and Institutional Ownership
52.1% of IDT Corporation shares are owned by institutional investors. Comparatively, 51.1% of TELUS Corporation shares are owned by institutional investors. 12.8% of IDT Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares IDT Corporation and TELUS Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares IDT Corporation and TELUS Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IDT Corporation||$1.47 billion||0.23||$26.51 million||$1.27||11.55|
|TELUS Corporation||$10.22 billion||2.11||$3.23 billion||$1.58||22.92|
TELUS Corporation has higher revenue and earnings than IDT Corporation. IDT Corporation is trading at a lower price-to-earnings ratio than TELUS Corporation, indicating that it is currently the more affordable of the two stocks.
TELUS Corporation beats IDT Corporation on 8 of the 15 factors compared between the two stocks.
IDT Corporation Company Profile
IDT Corporation is a holding company with operations primarily in the telecommunications and payment industries. The Company’s segments include Telecom Platform Services, Consumer Phone Services and All Other. The Company’s Telecom Platform Services segment provides retail telecommunications and payment offerings, as well as wholesale international long distance traffic termination. The Telecom Platform Services segment markets and distributes multiple communications and payment services across four businesses: Retail Communications, Wholesale Carrier Services, Payment Services and Hosted Platform Solutions. The Company’s Consumer Phone Services segment provides consumer local and long distance services in certain states of the United States. The Telecom Platform Services and Consumer Phone Services segments comprise the Company’s IDT Telecom division. The All Other segment includes its real estate holdings and other smaller businesses.
TELUS Corporation Company Profile
TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.
Receive News & Stock Ratings for IDT Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for IDT Corporation and related stocks with our FREE daily email newsletter.