Head-To-Head Analysis: TalkTalk Telecom Group (TKTCY) vs. Its Competitors

TalkTalk Telecom Group (OTCMKTS: TKTCY) is one of 73 public companies in the “Telephone communication, except radio” industry, but how does it contrast to its rivals? We will compare TalkTalk Telecom Group to related companies based on the strength of its dividends, valuation, earnings, profitability, risk, institutional ownership and analyst recommendations.

Profitability

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This table compares TalkTalk Telecom Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TalkTalk Telecom Group N/A N/A N/A
TalkTalk Telecom Group Competitors -12.86% -11.71% -1.52%

Volatility and Risk

TalkTalk Telecom Group has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, TalkTalk Telecom Group’s rivals have a beta of 0.59, suggesting that their average stock price is 41% less volatile than the S&P 500.

Dividends

TalkTalk Telecom Group pays an annual dividend of $0.57 per share and has a dividend yield of 4.6%. TalkTalk Telecom Group pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Telephone communication, except radio” companies pay a dividend yield of 4.0% and pay out 73.1% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares TalkTalk Telecom Group and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TalkTalk Telecom Group $2.33 billion $75.82 million 18.38
TalkTalk Telecom Group Competitors $17.39 billion $2.01 billion 17.98

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

Institutional and Insider Ownership

47.1% of shares of all “Telephone communication, except radio” companies are held by institutional investors. 7.3% of shares of all “Telephone communication, except radio” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for TalkTalk Telecom Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TalkTalk Telecom Group 1 1 1 0 2.00
TalkTalk Telecom Group Competitors 603 1851 1933 97 2.34

As a group, “Telephone communication, except radio” companies have a potential upside of 68.38%. Given TalkTalk Telecom Group’s rivals stronger consensus rating and higher possible upside, analysts plainly believe TalkTalk Telecom Group has less favorable growth aspects than its rivals.

Summary

TalkTalk Telecom Group rivals beat TalkTalk Telecom Group on 10 of the 15 factors compared.

TalkTalk Telecom Group Company Profile

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

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