Telenor ASA (TELNY) vs. The Competition Head-To-Head Comparison

Telenor ASA (OTCMKTS:TELNY) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it weigh in compared to its peers? We will compare Telenor ASA to related businesses based on the strength of its risk, dividends, institutional ownership, earnings, profitability, analyst recommendations and valuation.

Risk & Volatility

Telenor ASA has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Telenor ASA’s peers have a beta of -4.90, meaning that their average share price is 590% less volatile than the S&P 500.

Profitability

This table compares Telenor ASA and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telenor ASA	26.85%	16.94%	5.86%
Telenor ASA Competitors	-11.87%	-217.43%	-3.33%

Institutional and Insider Ownership

33.0% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 19.2% of shares of all “Diversified Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Telenor ASA pays an annual dividend of $0.69 per share and has a dividend yield of 4.8%. Telenor ASA pays out 45.4% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.8% and pay out 33.1% of their earnings in the form of a dividend. Telenor ASA lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Telenor ASA and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Telenor ASA	$7.38 billion	$678.08 million	9.39
Telenor ASA Competitors	$12.28 billion	$893.66 million	-167.35

Telenor ASA’s peers have higher revenue and earnings than Telenor ASA. Telenor ASA is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for Telenor ASA and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telenor ASA	2	2	0	4	2.75
Telenor ASA Competitors	1757	5360	7768	385	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 22.29%. Given Telenor ASA’s peers higher probable upside, analysts plainly believe Telenor ASA has less favorable growth aspects than its peers.

Summary

Telenor ASA peers beat Telenor ASA on 8 of the 15 factors compared.

Telenor ASA Company Profile

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.