Comparing TeliaSonera (TLSNY) and Its Competitors

TeliaSonera (OTCMKTS:TLSNY) is one of 33 publicly-traded companies in the “Wireless Telecommunication Services” industry, but how does it compare to its competitors? We will compare TeliaSonera to similar businesses based on the strength of its earnings, risk, institutional ownership, analyst recommendations, profitability, dividends and valuation.

Insider & Institutional Ownership

48.6% of shares of all “Wireless Telecommunication Services” companies are held by institutional investors. 23.2% of shares of all “Wireless Telecommunication Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares TeliaSonera and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TeliaSonera	$8.28 billion	$360.26 million	35.36
TeliaSonera Competitors	$658.84 billion	$2.68 billion	37.28

TeliaSonera’s competitors have higher revenue and earnings than TeliaSonera. TeliaSonera is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for TeliaSonera and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeliaSonera	1	2	0	1	2.25
TeliaSonera Competitors	320	912	1457	139	2.50

As a group, “Wireless Telecommunication Services” companies have a potential upside of 38.35%. Given TeliaSonera’s competitors stronger consensus rating and higher probable upside, analysts clearly believe TeliaSonera has less favorable growth aspects than its competitors.

Volatility & Risk

TeliaSonera has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, TeliaSonera’s competitors have a beta of 1.98, meaning that their average stock price is 98% more volatile than the S&P 500.

Profitability

This table compares TeliaSonera and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeliaSonera	6.54%	9.82%	2.83%
TeliaSonera Competitors	59.09%	11.62%	4.34%

Dividends

TeliaSonera pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. TeliaSonera pays out 71.4% of its earnings in the form of a dividend. As a group, “Wireless Telecommunication Services” companies pay a dividend yield of 3.1% and pay out 40.0% of their earnings in the form of a dividend. TeliaSonera lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

TeliaSonera competitors beat TeliaSonera on 14 of the 15 factors compared.

About TeliaSonera

Telia Company AB (publ) provides communication services to businesses, individuals, families, and communities in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. It offers mobile, broadband, television, and fixed-line services; and networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, and colocation solutions. The company also provides IoT connectivity, building monitoring, smart public transport, and smart utilities, as well as transport and logistics solutions comprising connected vehicle, asset tracking, and fleet management services. It markets its products and services under the Telia, Telia Cygate, TV4, C More, Halebop, Fello, MTV, Phonero, Onecall, MyCall, CallMe, MIT Tele, Ezys, Diil, Super, and Imt brand names for transport and logistics, public transport, manufacturing, retail, utilities, buildings and real estate, and public sector industries. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is based in Solna, Sweden.