Telecom Italia (OTCMKTS:TIIAY) & IDT (NYSE:IDT) Head to Head Analysis

Telecom Italia (OTCMKTS:TIIAY) and IDT (NYSE:IDT) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Risk & Volatility

Telecom Italia has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, IDT has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Telecom Italia and IDT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Italia	N/A	N/A	N/A
IDT	6.49%	26.75%	13.56%

Valuation & Earnings

This table compares Telecom Italia and IDT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Italia	$15.88 billion	0.95	-$660.08 million	N/A	N/A
IDT	$1.23 billion	1.01	$76.09 million	$3.22	15.45

IDT has lower revenue, but higher earnings than Telecom Italia.

Institutional & Insider Ownership

59.3% of IDT shares are owned by institutional investors. 25.4% of IDT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Telecom Italia pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. IDT pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. IDT pays out 7.5% of its earnings in the form of a dividend. IDT has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Telecom Italia and IDT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Italia	0	3	1	2	2.83
IDT	0	1	0	0	2.00

Summary

IDT beats Telecom Italia on 9 of the 15 factors compared between the two stocks.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.

About IDT

IDT Corporation provides communications and payment services in the United States, the United Kingdom, and internationally. It operates through Fintech, National Retail Solutions, net2phone, and Traditional Communications segments. The company operates point of sale, a terminal-based platform which provides independent retailers store management software, electronic payment processing, and other ancillary merchant services; and provides marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services; and Leaf, a digital wallet services which operates money transfer businesses, as well as net2phone, a unified cloud communication services, which includes voice, texting, and chat services to enable smarter business conversations. In addition, the company provides IDT Digital Payments enables businesses, entrepreneurs, and developers to offer prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards, and prepaid utility payments through its Zendit platform; and BOSS Revolution Calling, which provides international long-distance voice services primarily to immigrant communities in the United States and Canada. Further, it offers IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a unique self-serve portal that offers SMBs the power to purchase DIDs, manage IPs, select termination quality, make payments, and other services. The company also provides Awards2Go, a B2B incentive, loyalty, and customer appreciation gift card solution; and IO Security which provides automation to remediation. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.