Analyzing PT Telekomunikasi Indonesia, Tbk (TLK) and Its Competitors

PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it compare to its competitors? We will compare PT Telekomunikasi Indonesia, Tbk to similar businesses based on the strength of its dividends, profitability, analyst recommendations, risk, institutional ownership, valuation and earnings.

Dividends

PT Telekomunikasi Indonesia, Tbk pays an annual dividend of $0.94 per share and has a dividend yield of 8.7%. PT Telekomunikasi Indonesia, Tbk pays out 90.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.8% and pay out 33.1% of their earnings in the form of a dividend. PT Telekomunikasi Indonesia, Tbk lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

PT Telekomunikasi Indonesia, Tbk has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, PT Telekomunikasi Indonesia, Tbk’s competitors have a beta of -4.88, suggesting that their average share price is 588% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for PT Telekomunikasi Indonesia, Tbk and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Telekomunikasi Indonesia, Tbk	1	1	0	0	1.50
PT Telekomunikasi Indonesia, Tbk Competitors	1753	5343	7758	384	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 19.05%. Given PT Telekomunikasi Indonesia, Tbk’s competitors stronger consensus rating and higher probable upside, analysts plainly believe PT Telekomunikasi Indonesia, Tbk has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

32.7% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 19.2% of shares of all “Diversified Telecommunication Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares PT Telekomunikasi Indonesia, Tbk and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Telekomunikasi Indonesia, Tbk	10.88%	10.91%	5.46%
PT Telekomunikasi Indonesia, Tbk Competitors	-12.09%	-217.39%	-3.35%

Valuation and Earnings

This table compares PT Telekomunikasi Indonesia, Tbk and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PT Telekomunikasi Indonesia, Tbk	$8.80 billion	$1.05 billion	10.33
PT Telekomunikasi Indonesia, Tbk Competitors	$12.27 billion	$893.66 million	-168.03

PT Telekomunikasi Indonesia, Tbk’s competitors have higher revenue, but lower earnings than PT Telekomunikasi Indonesia, Tbk. PT Telekomunikasi Indonesia, Tbk is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

PT Telekomunikasi Indonesia, Tbk competitors beat PT Telekomunikasi Indonesia, Tbk on 9 of the 15 factors compared.

PT Telekomunikasi Indonesia, Tbk Company Profile

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.