TELUS (TU) & OI (OIBR) Head-To-Head Survey

TELUS (NYSE: TU) and OI (NYSE:OIBR) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Volatility and Risk

TELUS has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, OI has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.

Profitability

This table compares TELUS and OI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TELUS 9.61% 18.72% 5.38%
OI -24.34% -49.64% -7.06%

Institutional and Insider Ownership

52.2% of TELUS shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

TELUS pays an annual dividend of $1.58 per share and has a dividend yield of 4.2%. OI does not pay a dividend. TELUS pays out 97.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares TELUS and OI’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TELUS $9.66 billion 2.32 $923.60 million $1.62 23.24
OI N/A N/A N/A ($3.28) -2.07

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

Analyst Ratings

This is a summary of current ratings and recommmendations for TELUS and OI, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TELUS 0 2 7 0 2.78
OI 0 0 0 0 N/A

TELUS presently has a consensus target price of $46.17, indicating a potential upside of 22.62%. Given TELUS’s higher possible upside, equities research analysts clearly believe TELUS is more favorable than OI.

Summary

TELUS beats OI on 9 of the 11 factors compared between the two stocks.

TELUS Company Profile

TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.

OI Company Profile

Oi S.A. is an integrated telecommunications service provider in Brazil. The Company is a switched fixed-line telephony services (STFC) concessionaire. It is engaged in the provision of STFC as a local and intraregional long-distance carrier. Its segments include Residential Services, Personal Mobility, and SMEs/Corporate. It offers a range of integrated telecommunications services that include fixed and mobile, broadband, pay television (TV), data transmission and Internet provider services. The Company’s Residential Services segment is focused on the sale of fixed telephony services, including voice services, data communication services (broadband), and pay TV. The Personal Mobility segment is focused on the sale of mobile telephony services to subscription and prepaid customers, and mobile broadband customer. The SMEs/Corporate segment includes corporate solutions offered to its small, medium-sized, and large corporate customers.

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