Head-To-Head Review: Singapore Telecommunications (OTCMKTS:SGAPY) vs. TELUS (NYSE:TU)

TELUS (NYSE:TU) and Singapore Telecommunications (OTCMKTS:SGAPY) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Dividends

TELUS pays an annual dividend of $1.21 per share and has a dividend yield of 8.2%. Singapore Telecommunications pays an annual dividend of $1.51 per share and has a dividend yield of 4.3%. TELUS pays out 263.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TELUS has increased its dividend for 5 consecutive years. TELUS is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares TELUS and Singapore Telecommunications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS	4.67%	9.10%	2.59%
Singapore Telecommunications	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for TELUS and Singapore Telecommunications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS	0	7	1	0	2.13
Singapore Telecommunications	0	0	0	0	0.00

TELUS currently has a consensus target price of $21.50, suggesting a potential upside of 45.42%. Given TELUS’s stronger consensus rating and higher possible upside, equities analysts clearly believe TELUS is more favorable than Singapore Telecommunications.

Insider & Institutional Ownership

49.4% of TELUS shares are owned by institutional investors. Comparatively, 0.0% of Singapore Telecommunications shares are owned by institutional investors. 0.1% of TELUS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

TELUS has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Singapore Telecommunications has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Valuation and Earnings

This table compares TELUS and Singapore Telecommunications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS	$14.88 billion	1.53	$724.69 million	$0.46	32.14
Singapore Telecommunications	$10.57 billion	5.53	$3.00 billion	N/A	N/A

Singapore Telecommunications has lower revenue, but higher earnings than TELUS.

Summary

TELUS beats Singapore Telecommunications on 12 of the 15 factors compared between the two stocks.

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.

About Singapore Telecommunications

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, China, and internationally. The company operates through Optus, Singtel Singapore, NCS, Digital InfraCo, and Corporate segments. The company provides mobile, equipment sales, fixed voice and data, satellite, ICT and managed services; mobile, fixed voice and data, pay television, content and digital services, ICT as well as equipment sales in Singapore; and provides differentiated and end-to-end technology services to clients through its Gov+, Enterprise, and Telco+ strategic business groups with its NEXT capabilities in digital, data, cloud and platforms, as well as offers applications, infrastructure, engineering and cyber. It offers regional data centre services under Nxera; satellite carrier services; and Paragon, Singtel’s all-in-one digital acceleration platform for 5G multi-access edge compute and cloud orchestration. The company was incorporated in 1992 and is headquartered in Singapore.