BCE (NYSE: BCE) is one of 45 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it compare to its competitors? We will compare BCE to similar businesses based on the strength of its profitability, earnings, dividends, institutional ownership, valuation, analyst recommendations and risk.

Volatility & Risk

BCE has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, BCE’s competitors have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Profitability

This table compares BCE and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BCE 12.85% 21.08% 5.78%
BCE Competitors 0.72% -0.82% 1.41%

Dividends

BCE pays an annual dividend of $2.30 per share and has a dividend yield of 4.9%. BCE pays out 94.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.9% and pay out 1,359.0% of their earnings in the form of a dividend. BCE is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BCE and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BCE 0 5 4 0 2.44
BCE Competitors 534 1540 1830 65 2.36

BCE currently has a consensus target price of $57.80, indicating a potential upside of 23.11%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 47.99%. Given BCE’s competitors higher possible upside, analysts plainly believe BCE has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares BCE and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
BCE $18.26 billion $6.84 billion 19.24
BCE Competitors $13.52 billion $4.52 billion 5.97

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

Institutional and Insider Ownership

42.7% of BCE shares are held by institutional investors. Comparatively, 58.3% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.2% of BCE shares are held by insiders. Comparatively, 4.5% of shares of all “Integrated Telecommunications Services” companies are held 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.

Summary

BCE beats its competitors on 9 of the 15 factors compared.

BCE Company Profile

BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.

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