Analyzing Telefonica Brasil (VIV) and Inventergy Global (INVT)

Telefonica Brasil (NYSE: VIV) and Inventergy Global (OTCMKTS:INVT) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Telefonica Brasil and Inventergy Global, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonica Brasil 0 6 2 0 2.25
Inventergy Global 0 0 0 0 N/A

Telefonica Brasil presently has a consensus price target of $16.50, indicating a potential upside of 41.03%. Given Telefonica Brasil’s higher possible upside, research analysts clearly believe Telefonica Brasil is more favorable than Inventergy Global.

Institutional and Insider Ownership

9.5% of Telefonica Brasil shares are owned by institutional investors. 9.8% of Inventergy Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Telefonica Brasil and Inventergy Global’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telefonica Brasil $13.54 billion 1.46 $1.44 billion $0.85 13.76
Inventergy Global $1.77 million 0.38 -$7.73 million N/A N/A

Telefonica Brasil has higher revenue and earnings than Inventergy Global.

Dividends

Telefonica Brasil pays an annual dividend of $0.38 per share and has a dividend yield of 3.2%. Inventergy Global does not pay a dividend. Telefonica Brasil pays out 44.7% of its earnings in the form of a dividend. Telefonica Brasil has raised its dividend for 5 consecutive years.

Volatility & Risk

Telefonica Brasil has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Inventergy Global has a beta of -0.56, meaning that its stock price is 156% less volatile than the S&P 500.

Profitability

This table compares Telefonica Brasil and Inventergy Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telefonica Brasil 10.81% 6.71% 4.55%
Inventergy Global N/A 37.76% 23.80%

Summary

Telefonica Brasil beats Inventergy Global on 10 of the 14 factors compared between the two stocks.

Telefonica Brasil Company Profile

Telefônica Brasil S.A. provides mobile and fixed line telecommunications services to residential and corporate customers in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband Internet access through 3G and 4G, as well as mobile value-added services and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through direct to home satellite technology, IPTV, and cable, as well as pay-per-view and video on demand services; network services, such as rental of facilities; other services comprising Internet access, private network connectivity, computer equipment leasing, extended service, detects, voice mail and cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services in the field of financial services, machine-to-machine operations, e-health solutions, security, education, insurance, entertainment, and mobile advertising. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as handsets, smartphones, broadband USB modems, and devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. Telefônica Brasil S.A. offers its solutions through its stores, dealers, retail and distribution channels, and door-to-door sales. The company was formerly known as Telecomunicações de São Paulo S.A. ? TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil. Telefônica Brasil S.A. is a subsidiary of SP Telecomunicações Participações Ltda.

Inventergy Global Company Profile

Inventergy Global, Inc., an intellectual property (IP) investment and licensing company, engages in identifying, acquiring, and licensing patented technologies of various technology and small companies. The company acquires portfolios in the telecommunications industry primarily in core network infrastructure and mobile broadband communications segments. Inventergy Global, Inc. is headquartered in Campbell, California.

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