Telefonica SA (NYSE: TEF) and Oi SA (NYSE:OIBR) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

0.9% of Telefonica SA shares are owned by institutional investors. 0.0% of Telefonica SA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Telefonica SA and Oi SA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonica SA 2 4 7 0 2.38
Oi SA 0 0 0 0 N/A

Telefonica SA presently has a consensus target price of $10.83, suggesting a potential upside of 2.59%. Given Telefonica SA’s higher possible upside, research analysts plainly believe Telefonica SA is more favorable than Oi SA.

Profitability

This table compares Telefonica SA and Oi SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telefonica SA 5.18% 29.02% 6.53%
Oi SA -24.34% -49.64% -7.06%

Dividends

Telefonica SA pays an annual dividend of $0.51 per share and has a dividend yield of 4.8%. Oi SA does not pay a dividend. Telefonica SA pays out 96.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Telefonica SA and Oi SA’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Telefonica SA $64.58 billion 0.84 $20.19 billion $0.53 19.92
Oi SA N/A N/A N/A N/A N/A

Telefonica SA has higher revenue and earnings than Oi SA.

Summary

Telefonica SA beats Oi SA on 9 of the 10 factors compared between the two stocks.

Telefonica SA Company Profile

Telefonica, S.A. is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company’s services and products include Mobile business, Fixed-line telephony business and Digital services. Its segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica United Kingdom and Telefonica Hispanoamerica (formed by the Company’s operators in Argentina, Chile, Peru, Colombia, Mexico, Venezuela and Central America, Ecuador and Uruguay). These segments are engaged in activities relating to wireline, wireless, cable, data, Internet and television (TV) businesses and other digital services in accordance with each location. It offers a range of mobile and related services and products to personal and business customers. It offers traditional fixed telecommunication services, Internet and broadband multimedia services and data and business-solutions services. It offers a range of digital services, such as Internet of Things (IoT).

Oi SA Company Profile

Oi S.A. is an integrated telecommunications service provider in Brazil. The Company is a switched fixed-line telephony services (STFC) concessionaire. It is engaged in the provision of STFC as a local and intraregional long-distance carrier. Its segments include Residential Services, Personal Mobility, and SMEs/Corporate. It offers a range of integrated telecommunications services that include fixed and mobile, broadband, pay television (TV), data transmission and Internet provider services. The Company’s Residential Services segment is focused on the sale of fixed telephony services, including voice services, data communication services (broadband), and pay TV. The Personal Mobility segment is focused on the sale of mobile telephony services to subscription and prepaid customers, and mobile broadband customer. The SMEs/Corporate segment includes corporate solutions offered to its small, medium-sized, and large corporate customers.

Receive News & Stock Ratings for Telefonica SA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Telefonica SA and related stocks with our FREE daily email newsletter.