iQSTEL (NASDAQ:IQST) & Telecom Argentina Stet – France Telecom (NYSE:TEO) Critical Review

Telecom Argentina Stet – France Telecom (NYSE:TEO) and iQSTEL (NASDAQ:IQST) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Telecom Argentina Stet – France Telecom and iQSTEL, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Argentina Stet – France Telecom	1	2	4	0	2.43
iQSTEL	1	1	0	0	1.50

Telecom Argentina Stet – France Telecom currently has a consensus price target of $15.93, suggesting a potential upside of 52.38%. Given Telecom Argentina Stet – France Telecom’s stronger consensus rating and higher possible upside, equities analysts clearly believe Telecom Argentina Stet – France Telecom is more favorable than iQSTEL.

Valuation and Earnings

This table compares Telecom Argentina Stet – France Telecom and iQSTEL”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Argentina Stet – France Telecom	$6.81 billion	0.66	-$136.01 million	$1.23	8.50
iQSTEL	$394.07 million	0.02	-$9.16 million	($2.24)	-0.37

iQSTEL has lower revenue, but higher earnings than Telecom Argentina Stet – France Telecom. iQSTEL is trading at a lower price-to-earnings ratio than Telecom Argentina Stet – France Telecom, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Telecom Argentina Stet – France Telecom has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, iQSTEL has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Telecom Argentina Stet – France Telecom and iQSTEL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Argentina Stet – France Telecom	7.61%	9.38%	4.11%
iQSTEL	-2.43%	-45.19%	-15.55%

Summary

Telecom Argentina Stet – France Telecom beats iQSTEL on 11 of the 12 factors compared between the two stocks.

About Telecom Argentina Stet – France Telecom

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services. The company offers mobile telecommunications services, including voice communications, high-speed mobile Internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, Modems MiFi and wingles, and smart watches. It also internet connectivity products, including virtual private network services, traditional Internet protocol links, and other products; and programming and other cable television services. In addition, the company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it provides Infrastructure, interconnection, datacenter, Internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric Internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service; and management and administration services. The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018. Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.

About iQSTEL

iQSTEL Inc., through its subsidiary, Etelix.com USA, LLC, provides telecom and technology solutions. It provides international long-distance voice services (ILD wholesale) for telecommunications operator; and submarine fiber optic network capacity for internet, such as 4G and 5G. The company offers voice over IP connectivity, short messages service (SMS), and international and domestic SMS termination services. It also provides infrastructure connectivity, Cloud-PBX, OmniChannel marketing, Internet of Things services, and blockchain and payment solutions. iQSTEL Inc. serves wholesale carrier, government, corporate, enterprise, and small and medium companies in North America, Latin America, and Europe. The company was formerly known as PureSnax International, Inc. and changed its name to iQSTEL Inc. in August 2018. iQSTEL Inc. was incorporated in 2011 and is based in Coral Gables, Florida.