Reviewing Telenor (TELNY) and Sprint (S)

Telenor (OTCMKTS: TELNY) and Sprint (NYSE:S) are both large-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Telenor and Sprint, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telenor 1 0 0 0 1.00
Sprint 6 12 2 0 1.80

Sprint has a consensus price target of $5.57, indicating a potential downside of 14.68%. Given Sprint’s stronger consensus rating and higher possible upside, analysts plainly believe Sprint is more favorable than Telenor.

Profitability

This table compares Telenor and Sprint’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telenor 10.78% 28.33% 8.31%
Sprint 21.41% -0.94% -0.24%

Risk & Volatility

Telenor has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Sprint has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Telenor shares are held by institutional investors. Comparatively, 13.6% of Sprint shares are held by institutional investors. 0.2% of Sprint shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Telenor and Sprint’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telenor $15.10 billion 2.22 $1.45 billion $1.27 17.55
Sprint $33.35 billion 0.78 -$1.21 billion ($0.28) -23.32

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

Dividends

Telenor pays an annual dividend of $0.75 per share and has a dividend yield of 3.4%. Sprint does not pay a dividend. Telenor pays out 59.1% of its earnings in the form of a dividend.

About Telenor

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its products and services primarily include mobile communication, fixed line communication, and broadcasting activities. The company's mobile communication services comprise voice, data, Internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcasting services include DTH, broadcasting and data communication services through satellite, terrestrial radio and TV transmission, and encryption and conditional access services for TV distribution. The company also provides wholesale services to the operators; and enables the operators to route international voice, messaging, data and signaling traffic through a single connection to a global network, as well as handles international roaming relationships. In addition, it offers digital services that include international communication services and machine to machine communication, as well as Internet based services, digital media advertising, and financial services. Further, the company sells mobile devices; and leases base station sites, equipment primarily in the satellite business, and properties. Telenor ASA was founded in 1885 and is headquartered in Fornebu, Norway.

About Sprint

Sprint Corporation, through its subsidiaries, provides various wireless and wireline communications products and services to consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates in two segments, Wireless and Wireline. The Wireless segment offers wireless data communication services, including mobile productivity applications, such as Internet access, messaging, and email services; wireless photo and video offerings; location-based capabilities comprising asset and fleet management, dispatch services, and navigation tools; and mobile entertainment applications. It also provides wireless voice communications services that include local and long-distance wireless voice services, as well as voicemail, call waiting, three-way calling, caller identification, directory assistance, and call forwarding services. In addition, this segment offers voice and data services internationally through roaming arrangements; and customized wireless services to large companies and government agencies, as well as sells wireless devices, broadband devices, connected devices, and accessories to agents and other third-party distributors. The Wireline segment provides wireline voice and data communications, including domestic and international data communications using various protocols, such as multiprotocol label switching technologies, Internet protocol (IP), managed network services, Voice over IP, session initiated protocol, and traditional voice services to other communications companies, and targeted business subscribers. Sprint Corporation offers its services under the Sprint, Boost Mobile, Virgin Mobile, and Assurance Wireless brands. It offers products through its 300 branded retail locations in the Southern California region. The company was founded in 1899 and is headquartered in Overland Park, Kansas. Sprint Corporation is a subsidiary of SoftBank Group Corp.

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