B Communications (NASDAQ:BCOM) and Telecom Italia (NYSE:TI) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Risk and Volatility
B Communications has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.
This table compares B Communications and Telecom Italia’s net margins, return on equity and return on assets.
Valuation and Earnings
This table compares B Communications and Telecom Italia’s revenue, earnings per share (EPS) and valuation.
Telecom Italia has higher revenue and earnings than B Communications.
This is a summary of current recommendations for B Communications and Telecom Italia, as provided by MarketBeat.com.
Telecom Italia has a consensus price target of $10.53, indicating a potential upside of 64.53%. Given Telecom Italia’s higher possible upside, analysts clearly believe Telecom Italia is more favorable than B Communications.
Institutional and Insider Ownership
5.5% of B Communications shares are held by institutional investors. Comparatively, 0.8% of Telecom Italia shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Telecom Italia beats B Communications on 7 of the 9 factors compared between the two stocks.
B Communications Company Profile
B Communications Ltd., through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel. The company offers fixed-line telephony, fixed-line broadband Internet infrastructure access, Internet service provider, cellular telephony, international telephony, international and domestic data transfer and network, information and communication technology, pay television, multi-channel television, television and radio broadcasts, satellite broadcasts, and customer call center services, as well as other communications infrastructures and services. It is also involved in the maintenance and development of communications infrastructures; provision of communications services to other communications providers; and supply and maintenance of equipment on customer premises, such as network end point services. The company was formerly known as 012 Smile. Communications Ltd. and changed its name to B Communications Ltd. in March 2010. B Communications Ltd. was founded in 1999 and is based in Ramat Gan, Israel. B Communications Ltd. is a subsidiary of Internet Gold – Golden Lines Ltd.
Telecom Italia Company Profile
Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, the Mediterranean Basin, and South America. It offers landline and mobile telecommunications, voice, messaging, data, Internet, and broadband services for consumers, as well as for small and medium-size enterprises, small offices/home offices, public sector clients, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also provides regulated and unregulated wholesale services for fixed and mobile telecommunications operators; infrastructure for housing radio transmission equipment of mobile telephone networks; and office products and services for information technology (IT), as well as develops, engineers, builds, and operates network infrastructures, IT, real estate properties, and plant engineering. In addition, it offers Ethernet, optical connectivity, and Internet protocol solutions; dedicated transport services; platform services to distribute multimedia content; wireless and satellite services through a radio channel; and IT products and solutions for business customers. Telecom Italia S.p.A. was founded in 1908 and is based in Milan, Italy.