Comparing Intelsat (I) and Telecom Italia (TI)

Intelsat (NYSE: I) and Telecom Italia (NYSE:TI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Intelsat and Telecom Italia, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intelsat 2 4 1 0 1.86
Telecom Italia 3 0 3 0 2.00

Intelsat currently has a consensus target price of $4.75, indicating a potential downside of 73.13%. Telecom Italia has a consensus target price of $6.17, indicating a potential downside of 16.80%. Given Telecom Italia’s stronger consensus rating and higher probable upside, analysts plainly believe Telecom Italia is more favorable than Intelsat.

Volatility and Risk

Intelsat has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

35.2% of Intelsat shares are held by institutional investors. Comparatively, 0.8% of Telecom Italia shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Intelsat and Telecom Italia’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intelsat $2.15 billion 1.12 -$178.72 million ($1.70) -10.40
Telecom Italia $23.00 billion 0.68 $1.27 billion N/A N/A

Telecom Italia has higher revenue and earnings than Intelsat.

Profitability

This table compares Intelsat and Telecom Italia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intelsat -9.78% N/A -1.89%
Telecom Italia N/A N/A N/A

Summary

Telecom Italia beats Intelsat on 7 of the 10 factors compared between the two stocks.

Intelsat Company Profile

Intelsat S.A., through its subsidiaries, provides satellite communications services worldwide. The company offers a range of communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations, and Internet service providers; and commercial satellite communication services to the U.S. government and other military organizations and their contractors. It provides various on-network services, including transponder services; managed services that combine satellite capacity, teleport facilities, satellite communications hardware, and other ground facilities to provide managed and monitored broadband, trunking, video, and private network services to customers; and channel services primarily used for point-to-point bilateral services to telecommunications providers. The company also offers off-network and other services comprising transponder, mobile satellite, and other services. In addition, it offers satellite-related consulting and technical services that include the lifecycle of satellite operations and related infrastructure, from satellite and launch vehicle procurement through telemetry and commanding services, and related equipment sale services to other satellite operators. The company was founded in 1964 and is headquartered in Luxembourg City, Luxembourg. Intelsat S.A. is a subsidiary of Serafina S.A.

Telecom Italia Company Profile

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, the Mediterranean Basin, and South America. It offers landline and mobile telecommunications, voice, messaging, data, Internet, and broadband services for consumers, as well as for small and medium-size enterprises, small offices/home offices, public sector clients, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also provides regulated and unregulated wholesale services for fixed and mobile telecommunications operators; infrastructure for housing radio transmission equipment of mobile telephone networks; and office products and services for information technology (IT), as well as develops, engineers, builds, and operates network infrastructures, IT, real estate properties, and plant engineering. In addition, it offers Ethernet, optical connectivity, and Internet protocol solutions; dedicated transport services; platform services to distribute multimedia content; wireless and satellite services through a radio channel; and IT products and solutions for business customers. Telecom Italia S.p.A. was founded in 1908 and is based in Milan, Italy.

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