Telefônica Brasil (NYSE:VIV) and BCE (NYSE:BCE) are both large-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Profitability
This table compares Telefônica Brasil and BCE's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Telefônica Brasil | 10.97% | 6.70% | 4.30% |
| BCE | 10.21% | 16.12% | 4.61% |
Dividends
Telefônica Brasil pays an annual dividend of $0.72 per share and has a dividend yield of 9.3%. BCE pays an annual dividend of $2.62 per share and has a dividend yield of 6.0%. Telefônica Brasil pays out 104.3% 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 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 raised its dividend for 1 consecutive years.
Insider & Institutional Ownership
7.9% of Telefônica Brasil shares are owned by institutional investors. Comparatively, 45.0% of BCE shares are owned by institutional investors. 0.2% of BCE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Telefônica Brasil and BCE's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Telefônica Brasil | $10.98 billion | 1.19 | $1.27 billion | $0.69 | 11.25 |
| BCE | $18.06 billion | 2.18 | $2.40 billion | $2.64 | 16.46 |
BCE has higher revenue and earnings than Telefônica Brasil. Telefônica Brasil is trading at a lower price-to-earnings ratio than BCE, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Telefônica Brasil and BCE, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Telefônica Brasil | 0 | 1 | 6 | 0 | 2.86 |
| BCE | 1 | 6 | 2 | 0 | 2.11 |
Telefônica Brasil presently has a consensus price target of $10.75, indicating a potential upside of 38.53%. BCE has a consensus price target of $58.4375, indicating a potential upside of 34.46%. Given Telefônica Brasil's stronger consensus rating and higher possible upside, analysts plainly believe Telefônica Brasil is more favorable than BCE.
Summary
BCE beats Telefônica Brasil on 11 of the 16 factors compared between the two stocks.
