TELUS Corporation (NYSE: TU) and Altice USA (NASDAQ:ATUS) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Insider & Institutional Ownership

52.7% of TELUS Corporation shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TELUS Corporation and Altice USA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TELUS Corporation $10.33 billion 2.02 $3.27 billion $1.58 22.39
Altice USA $9.20 billion 2.44 $3.69 billion N/A N/A

Altice USA has higher revenue, but lower earnings than TELUS Corporation.

Profitability

This table compares TELUS Corporation and Altice USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TELUS Corporation 9.55% 18.75% 5.44%
Altice USA -20.39% -63.90% -5.28%

Analyst Ratings

This is a breakdown of current recommendations for TELUS Corporation and Altice USA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TELUS Corporation 0 0 5 0 3.00
Altice USA 0 5 7 0 2.58

TELUS Corporation currently has a consensus price target of $45.00, suggesting a potential upside of 27.19%. Altice USA has a consensus price target of $36.42, suggesting a potential upside of 19.75%. Given TELUS Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe TELUS Corporation is more favorable than Altice USA.

Dividends

TELUS Corporation pays an annual dividend of $1.46 per share and has a dividend yield of 4.1%. Altice USA does not pay a dividend. TELUS Corporation pays out 92.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TELUS Corporation beats Altice USA on 8 of the 12 factors compared between the two stocks.

TELUS Corporation Company Profile

TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.

Altice USA Company Profile

Altice USA, Inc. is engaged in providing broadband communications and video services in the United States. The Company’s segments include Cablevision and Cequel. Cablevision provides broadband, pay television and telephony services to residential and business customers in and around the New York metropolitan area. Cequel provides broadband, pay television and telephony services to residential and business customers in the south-central United States. It also provides services through ten states of Texas, West Virginia, Louisiana, Arkansas, North Carolina, Oklahoma, Arizona, California, Missouri and Ohio. The Company also provides Wi-Fi hotspot access content and advertising services. Broadband provides services, such as video streaming, content downloading for time-shifted video consumption and other applications delivered over OTT platforms. Pay Television provides services through cable network. Video services delivered over DSL networks.

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