Critical Contrast: Telenor ASA (OTCMKTS:TELNY) versus Deutsche Telekom (OTCMKTS:DTEGY)

Deutsche Telekom (OTCMKTS:DTEGY) and Telenor ASA (OTCMKTS:TELNY) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Profitability

This table compares Deutsche Telekom and Telenor ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Telekom	10.15%	10.62%	3.41%
Telenor ASA	13.34%	14.17%	4.82%

Analyst Recommendations

This is a breakdown of current ratings for Deutsche Telekom and Telenor ASA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Telekom	0	2	1	1	2.75
Telenor ASA	1	4	0	0	1.80

Volatility & Risk

Deutsche Telekom has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Telenor ASA has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Earnings and Valuation

This table compares Deutsche Telekom and Telenor ASA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Telekom	$125.29 billion	1.24	$12.13 billion	$2.70	11.71
Telenor ASA	$7.44 billion	2.63	$1.71 billion	$0.74	19.28

Deutsche Telekom has higher revenue and earnings than Telenor ASA. Deutsche Telekom is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.

Summary

Deutsche Telekom beats Telenor ASA on 7 of the 12 factors compared between the two stocks.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.