Reviewing Telus (TU) and Partner Communications (PTNR)

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

Analyst Ratings

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This is a summary of current ratings and recommmendations for Telus and Partner Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telus 0 2 6 0 2.75
Partner Communications 0 0 1 0 3.00

Telus presently has a consensus target price of $46.17, suggesting a potential upside of 31.12%. Partner Communications has a consensus target price of $16.00, suggesting a potential upside of 287.41%. Given Partner Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Partner Communications is more favorable than Telus.

Profitability

This table compares Telus and Partner Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telus 10.94% 18.78% 5.36%
Partner Communications 2.70% 6.57% 1.84%

Earnings & Valuation

This table compares Telus and Partner Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telus $10.26 billion 2.04 $1.13 billion $2.03 17.34
Partner Communications $943.00 million 0.73 $33.00 million N/A N/A

Telus has higher revenue and earnings than Partner Communications.

Dividends

Telus pays an annual dividend of $1.61 per share and has a dividend yield of 4.6%. Partner Communications does not pay a dividend. Telus pays out 79.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telus has increased its dividend for 2 consecutive years.

Volatility and Risk

Telus has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Partner Communications has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Insider and Institutional Ownership

51.8% of Telus shares are held by institutional investors. Comparatively, 2.4% of Partner Communications shares are held by institutional investors. 0.6% of Partner Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Telus beats Partner Communications on 10 of the 16 factors compared between the two stocks.

About Telus

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications products and services in Canada. It operates through Wireless and Wireline segments. The company's telecommunications products and services comprise wireless and wireline voice and data services; data services, including Internet protocol; television services; hosting, managed information technology, and security and cloud-based services; healthcare solutions; business process outsourcing; and security solutions. It has 13 million subscriber connections, including 8.9 million wireless subscribers, 1.7 million high-speed Internet subscribers, 1.3 million wireline residential network access lines, and 1.1 million TELUS TV subscribers. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was founded in 1993 and is based in Vancouver, Canada.

About Partner Communications

Partner Communications Company Ltd. provides cellular and fixed-line telecommunication services in Israel. The company operates in two segments, Cellular and Fixed-Line. It offers cellular telephony services on 2G, 3G, and 4G networks; and basic services, including cellular voice services in Israel and abroad, text messaging services, and mobile broadband services, as well as a mobile application for information and purchasing. The company also provides content services, 4G TV video content, television and music applications, backup and synchronizing services, defense and security services, and services for small and medium-sized businesses; machine to machine connectivity solutions; and international roaming services. In addition, it offers Internet service provider (ISP) services, such as email accounts, Wi-Fi networking, anti-virus and site filtering, and infrastructure and ISP access services; network and data infrastructure services, information security solutions, integration solutions, business information storage, and data center and cloud services; international long distance telephony services; fixed-line transmission and data capacity services; and voice over broadband telephony services and primary rate interface services, as well as value added services. Further, the company sells cellular handsets, modems, tablets, laptops, and related accessories, as well as handset maintenance and spare parts; landline phones, routers, servers, smart boxes and related equipment, media streamers, Wi-Fi -only tablets, and other telecommunications equipment; and digital audio visual equipment, including televisions, digital cameras, games consoles, media streamers, digital watches, 3D glasses, smart TVs, and other related equipment. It offers its services and products through sales and service centers, and direct sales force, as well as through dealers and online. The company was founded in 1997 and is headquartered in Rosh HaAyin, Israel.

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