Head to Head Analysis: Lumen Technologies (NYSE:LUMN) vs. Deutsche Telekom (OTCMKTS:DTEGY)

Lumen Technologies (NYSE:LUMN) and Deutsche Telekom (OTCMKTS:DTEGY) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings for Lumen Technologies and Deutsche Telekom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lumen Technologies	2	7	2	0	2.00
Deutsche Telekom	0	1	1	4	3.50

Lumen Technologies currently has a consensus target price of $4.58, indicating a potential upside of 2.42%. Given Lumen Technologies’ higher possible upside, equities analysts clearly believe Lumen Technologies is more favorable than Deutsche Telekom.

Profitability

This table compares Lumen Technologies and Deutsche Telekom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lumen Technologies	-2.41%	-75.08%	-0.87%
Deutsche Telekom	10.26%	10.03%	3.20%

Insider & Institutional Ownership

66.2% of Lumen Technologies shares are owned by institutional investors. 2.3% of Lumen Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Lumen Technologies has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Earnings & Valuation

This table compares Lumen Technologies and Deutsche Telekom”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lumen Technologies	$13.11 billion	0.35	-$55.00 million	($0.31)	-14.44
Deutsche Telekom	$125.29 billion	1.46	$12.13 billion	$2.62	14.00

Deutsche Telekom has higher revenue and earnings than Lumen Technologies. Lumen Technologies is trading at a lower price-to-earnings ratio than Deutsche Telekom, indicating that it is currently the more affordable of the two stocks.

Summary

Deutsche Telekom beats Lumen Technologies on 10 of the 15 factors compared between the two stocks.

About Lumen Technologies

Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services to business and residential customers in the United States and internationally. The company operates in two segments, Business and Mass Markets. It offers dark fiber, edge cloud services, internet protocol, managed security, software-defined wide area networks, secure access service edge, unified communications and collaboration, and optical wavelengths services; ethernet and VPN data networks services; and legacy services to manage cash flow, including time division multiplexing voice, private line, and other legacy services, as well as sells communication equipment, and IT solutions. The company also provides high speed and lower speed broadband service to residential and small business customers; local and long-distance voice services, professional services, and other ancillary services; and federal broadband and state support programs. It serves its products and services under the Lumen, Quantum Fiber, and CenturyLink brands. The company was formerly known as CenturyLink, Inc. and changed its name to Lumen Technologies, Inc. in September 2020. Lumen Technologies, Inc. was incorporated in 1968 and is headquartered in Monroe, Louisiana.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.