Telefonica Brasil (NYSE: VIV) is one of 47 public companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its peers? We will compare Telefonica Brasil to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.

Earnings and Valuation

This table compares Telefonica Brasil and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Telefonica Brasil $13.52 billion $4.44 billion 22.01
Telefonica Brasil Competitors $12.65 billion $4.22 billion 1.15

Telefonica Brasil has higher revenue and earnings than its peers. Telefonica Brasil is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

10.0% of Telefonica Brasil shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 4.4% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Telefonica Brasil and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonica Brasil 0 2 1 0 2.33
Telefonica Brasil Competitors 606 1673 1931 74 2.34

Telefonica Brasil presently has a consensus target price of $15.00, indicating a potential downside of 7.92%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 32.86%. Given Telefonica Brasil’s peers stronger consensus rating and higher possible upside, analysts plainly believe Telefonica Brasil has less favorable growth aspects than its peers.

Dividends

Telefonica Brasil pays an annual dividend of $0.55 per share and has a dividend yield of 3.4%. Telefonica Brasil pays out 74.3% of its earnings in the form of a dividend. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 5.0% and pay out 833.6% of their earnings in the form of a dividend. Telefonica Brasil has increased its dividend for 4 consecutive years.

Profitability

This table compares Telefonica Brasil and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telefonica Brasil 9.41% 5.91% 3.97%
Telefonica Brasil Competitors 0.56% -0.24% 1.46%

Volatility & Risk

Telefonica Brasil has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Telefonica Brasil’s peers have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Summary

Telefonica Brasil beats its peers on 8 of the 15 factors compared.

Telefonica Brasil Company Profile

Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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