Financial Analysis: Orange (NYSE:ORAN) and The Competition

Orange (NYSE: ORAN) is one of 48 public companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its rivals? We will compare Orange to related companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Profitability

This table compares Orange and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orange N/A N/A N/A
Orange Competitors 2.34% -1.10% 1.96%

Volatility and Risk

Orange has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Orange’s rivals have a beta of 0.99, indicating that their average stock price is 1% less volatile than the S&P 500.

Dividends

Orange pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.4% and pay out 610.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Orange and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orange 1 1 3 0 2.40
Orange Competitors 619 1717 2053 66 2.35

As a group, “Integrated Telecommunications Services” companies have a potential upside of 56.46%. Given Orange’s rivals higher possible upside, analysts plainly believe Orange has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Orange and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Orange $45.29 billion $3.25 billion N/A
Orange Competitors $15.94 billion $1.27 billion 17.25

Orange has higher revenue and earnings than its rivals.

Insider & Institutional Ownership

1.2% of Orange shares are owned by institutional investors. Comparatively, 59.8% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 5.0% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Orange rivals beat Orange on 8 of the 14 factors compared.

About Orange

Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.

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