Centurylink (CTL) vs. Telekom Austria (TKAGY) Head to Head Survey

Centurylink (NYSE: CTL) and Telekom Austria (OTCMKTS:TKAGY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Centurylink and Telekom Austria’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Centurylink $17.66 billion 1.18 $1.39 billion $1.47 13.12
Telekom Austria $4.95 billion 1.23 $389.34 million $1.36 13.49

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

Dividends

Centurylink pays an annual dividend of $2.16 per share and has a dividend yield of 11.2%. Telekom Austria pays an annual dividend of $0.42 per share and has a dividend yield of 2.3%. Centurylink pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telekom Austria pays out 30.9% of its earnings in the form of a dividend.

Profitability

This table compares Centurylink and Telekom Austria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centurylink 6.92% 4.94% 1.43%
Telekom Austria 5.70% 11.79% 4.45%

Institutional and Insider Ownership

86.2% of Centurylink shares are owned by institutional investors. 0.6% of Centurylink shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Centurylink has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Telekom Austria has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Centurylink and Telekom Austria, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centurylink 1 7 6 0 2.36
Telekom Austria 0 2 0 0 2.00

Centurylink presently has a consensus target price of $21.00, indicating a potential upside of 8.86%. Given Centurylink’s stronger consensus rating and higher possible upside, equities analysts clearly believe Centurylink is more favorable than Telekom Austria.

Summary

Centurylink beats Telekom Austria on 11 of the 16 factors compared between the two stocks.

About Centurylink

CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers primarily in the United States. It operates in two segments, Business and Consumer. The company offers virtual private network data network services; Ethernet services; Internet protocol services; CenturyLink Prism TV that allows customers to watch television or cable channels and record up to four shows on one home digital video recorder; and Vyvx, which provides audio and video feeds over fiber or satellite for broadcast and production customers, as well as satellite digital television services. It also provides broadband services, which allow customers to connect to the Internet through their existing telephone lines or fiber-optic cables; private line solution for transmission of data between sites; colocation and data center services comprising cloud, hosting, and application management solutions; wavelength services that provide customers required bandwidth with an end-to-end transport solution of a bandwidth; and network security solutions, as well as sells telecommunications equipment and resells software, and provides network management, installation and maintenance of data equipment, and building of fiber-optic broadband networks. In addition, the company offers local calling services; long-distance and toll-free services; information technology (IT) services, such as transporting and delivering enterprise data and applications; and managed services consisting of network, hosting, cloud, and IT services. Further, it leases and subleases space in its office buildings, warehouses, and other properties. As of December 31, 2017, the company operated approximately 10.3 million total access lines; and served approximately 5.7 million broadband subscribers. CenturyLink, Inc. was founded in 1968 and is based in Monroe, Louisiana.

About Telekom Austria

Telekom Austria Aktiengesellschaft, together with its subsidiaries, provides fixed-line and mobile communications services to individuals, commercial and non-commercial organizations, and other national and foreign carriers. Its fixed-line services include access, Internet, fixed-to-mobile calls, international traffic, voice value-added services, interconnection, call center services, data and ICT solutions, television services, and public payphone services; and mobile communications services comprise digital mobile communications services, including value-added services, text and multimedia messaging, m-commerce, and information services. The company also provides voice telephony, convergent products, Internet access, data and IT solutions, value added services, wholesale services, and IP television and payment solutions, as well as mobile telephone and satellite television services. In addition, it sells end-user terminal equipment; and sets up customer lines that include installation work. As of December 31, 2017, the company provided mobile communication services to approximately 20.7 million customers; and had approximately 6.0 million fixed-line revenue generating units. It has operations in Austria, Slovenia, Bulgaria, Belarus, Croatia, the Republic of Serbia, and the Republic of Macedonia. The company is headquartered in Vienna, Austria. Telekom Austria Aktiengesellschaft is a subsidiary of América Móvil, S.A.B. de C.V.

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