Contrasting TIM (NYSE:TIMB) and Orange (OTC:ORANY)

TIM (NYSE:TIMB) and Orange (OTC:ORANY) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares TIM and Orange’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TIM	12.71%	11.73%	5.51%
Orange	N/A	N/A	N/A

Earnings and Valuation

This table compares TIM and Orange”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TIM	$4.77 billion	1.39	$568.34 million	$1.26	10.91
Orange	$47.75 billion	0.60	$2.64 billion	N/A	N/A

Orange has higher revenue and earnings than TIM.

Institutional and Insider Ownership

12.2% of Orange shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

TIM has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Orange has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for TIM and Orange, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TIM	0	3	1	0	2.25
Orange	0	1	0	0	2.00

TIM currently has a consensus price target of $17.57, indicating a potential upside of 27.80%. Given TIM’s stronger consensus rating and higher probable upside, research analysts plainly believe TIM is more favorable than Orange.

Dividends

TIM pays an annual dividend of $0.71 per share and has a dividend yield of 5.2%. Orange pays an annual dividend of $0.42 per share and has a dividend yield of 3.9%. TIM pays out 56.3% of its earnings in the form of a dividend.

Summary

TIM beats Orange on 9 of the 13 factors compared between the two stocks.

About TIM

TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.

About Orange

Orange S.A. provides fixed telephony, mobile telecommunication, data transmission, and other value-added services to individuals, professionals, and large companies in France and internationally. It offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as B2B fixed solutions and networks services, including voice and data services. The company also sells handsets, broadband equipment, connected devices, and accessories. In addition, it provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, the company offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors, brokers, and operators. It markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was incorporated in 1991 and is headquartered in Issy-les-Moulineaux, France.