Critical Analysis: Black Box Corporation (BBOX) vs. Telefonica SA (TEF)
Black Box Corporation (NASDAQ: BBOX) and Telefonica SA (NYSE:TEF) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Volatility & Risk
Black Box Corporation has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Telefonica SA has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Black Box Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 16.1%. Telefonica SA pays an annual dividend of $0.51 per share and has a dividend yield of 5.0%. Black Box Corporation pays out -33.6% of its earnings in the form of a dividend. Telefonica SA pays out 102.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Box Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Black Box Corporation and Telefonica SA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Black Box Corporation||$855.70 million||0.05||-$7.05 million||($1.43)||-2.08|
|Telefonica SA||$57.59 billion||0.90||$2.62 billion||$0.50||20.52|
Telefonica SA has higher revenue and earnings than Black Box Corporation. Black Box Corporation is trading at a lower price-to-earnings ratio than Telefonica SA, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.8% of Black Box Corporation shares are held by institutional investors. Comparatively, 0.9% of Telefonica SA shares are held by institutional investors. 3.7% of Black Box Corporation shares are held by company insiders. Comparatively, 0.0% of Telefonica SA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Black Box Corporation and Telefonica SA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Black Box Corporation||-2.69%||-2.71%||-0.86%|
This is a summary of recent ratings and target prices for Black Box Corporation and Telefonica SA, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Black Box Corporation||0||1||0||0||2.00|
Black Box Corporation presently has a consensus price target of $10.00, indicating a potential upside of 235.57%. Telefonica SA has a consensus price target of $10.90, indicating a potential upside of 6.24%. Given Black Box Corporation’s higher probable upside, analysts clearly believe Black Box Corporation is more favorable than Telefonica SA.
Telefonica SA beats Black Box Corporation on 10 of the 15 factors compared between the two stocks.
About Black Box Corporation
Black Box Corporation is a technology solutions provider. The Company is engaged in designing, building, managing and securing the information technology (IT) infrastructure. Offerings under the Company’s Products platform include IT infrastructure, specialty networking, multimedia and keyboard/video/mouse (KVM) switching. Offerings under its Services platform include unified communications, data infrastructure and managed services. It conducts business globally and manages its business on a geographic-service type basis consisting of four segments: North America Products, North America Services, International Products and International Services. The offerings of its Products platform are distributed through value-added resellers, direct marketing manufacturers, mass merchandisers, Web retailers and others. The offerings of its Services platform are distributed through value-added resellers, manufacturers and large system integrators, among others.
About Telefonica SA
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).
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