Telefonica Brasil (NYSE: VIV) is one of 47 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare Telefonica Brasil to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.

Institutional and Insider Ownership

10.0% of Telefonica Brasil shares are held by institutional investors. Comparatively, 56.0% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 4.4% of shares of all “Integrated Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Telefonica Brasil and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Telefonica Brasil $13.46 billion $4.42 billion 21.41
Telefonica Brasil Competitors $12.75 billion $4.25 billion 3.75

Telefonica Brasil has higher revenue and earnings than its peers. Telefonica Brasil is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Telefonica Brasil and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telefonica Brasil 9.41% 5.91% 3.97%
Telefonica Brasil Competitors 0.51% -0.18% 1.52%

Dividends

Telefonica Brasil pays an annual dividend of $0.55 per share and has a dividend yield of 3.5%. Telefonica Brasil pays out 74.3% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.9% and pay out 796.8% of their earnings in the form of a dividend. Telefonica Brasil has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Telefonica Brasil and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonica Brasil 0 2 1 0 2.33
Telefonica Brasil Competitors 615 1691 1944 74 2.34

Telefonica Brasil currently has a consensus price target of $15.00, indicating a potential downside of 5.30%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 35.40%. Given Telefonica Brasil’s peers stronger consensus rating and higher possible upside, analysts plainly believe Telefonica Brasil has less favorable growth aspects than its peers.

Volatility and Risk

Telefonica Brasil has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Telefonica Brasil’s peers have a beta of 1.07, meaning that their average stock price is 7% more volatile than the S&P 500.

Summary

Telefonica Brasil beats its peers on 8 of the 15 factors compared.

About Telefonica Brasil

Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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