BCE (NYSE:BCE) and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) are both large-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Profitability
This table compares BCE and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
BCE | 10.21% | 16.12% | 4.61% |
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | 17.14% | 19.17% | 9.46% |
Insider & Institutional Ownership
45.0% of BCE shares are held by institutional investors. Comparatively, 3.7% of Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk shares are held by institutional investors. 0.2% of BCE shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Dividends
BCE pays an annual dividend of $2.62 per share and has a dividend yield of 6.1%. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. BCE pays out 99.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BCE has increased its dividend for 1 consecutive years. BCE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
BCE has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for BCE and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
BCE | 1 | 6 | 2 | 0 | 2.11 |
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | 0 | 0 | 1 | 0 | 3.00 |
BCE presently has a consensus target price of $58.4375, indicating a potential upside of 36.66%. Given BCE's higher possible upside, equities analysts clearly believe BCE is more favorable than Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk.
Valuation and Earnings
This table compares BCE and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
BCE | $18.06 billion | 2.14 | $2.40 billion | $2.64 | 16.20 |
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | $9.49 billion | 2.50 | $1.37 billion | N/A | N/A |
BCE has higher revenue and earnings than Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk.
Summary
BCE beats Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk on 9 of the 16 factors compared between the two stocks.