Orange SA (NASDAQ: ORAN) and BCE (NYSE:BCE) are both large-cap telecommunications services companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Orange SA $49.41 billion 0.88 $14.60 billion N/A N/A
BCE $18.26 billion 2.32 $6.84 billion $2.44 19.25

Orange SA has higher revenue and earnings than BCE.

Dividends

BCE pays an annual dividend of $2.30 per share and has a dividend yield of 4.9%. Orange SA does not pay a dividend. BCE pays out 94.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

42.7% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Orange SA and BCE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orange SA 4.09% 4.47% 1.76%
BCE 12.85% 21.08% 5.78%

Analyst Ratings

This is a breakdown of current ratings and target prices for Orange SA and BCE, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orange SA 2 1 2 0 2.00
BCE 0 5 4 0 2.44

BCE has a consensus price target of $57.80, indicating a potential upside of 23.03%. Given BCE’s stronger consensus rating and higher possible upside, analysts plainly believe BCE is more favorable than Orange SA.

Summary

BCE beats Orange SA on 10 of the 14 factors compared between the two stocks.

Orange SA Company Profile

Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.

BCE Company Profile

BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.

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