PLDT (PHI) and Verizon Communications (VZ) Critical Survey
PLDT (NYSE: PHI) and Verizon Communications (NYSE:VZ) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
This is a summary of current ratings for PLDT and Verizon Communications, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Verizon Communications has a consensus target price of $50.67, suggesting a potential downside of 1.13%. Given Verizon Communications’ higher possible upside, analysts clearly believe Verizon Communications is more favorable than PLDT.
Volatility & Risk
PLDT has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Verizon Communications has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
This table compares PLDT and Verizon Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PLDT pays an annual dividend of $1.23 per share and has a dividend yield of 4.2%. Verizon Communications pays an annual dividend of $2.36 per share and has a dividend yield of 4.6%. PLDT pays out 50.6% of its earnings in the form of a dividend. Verizon Communications pays out 60.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PLDT has increased its dividend for 10 consecutive years.
Earnings and Valuation
This table compares PLDT and Verizon Communications’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PLDT||$3.49 billion||1.79||$422.12 million||$2.43||11.92|
|Verizon Communications||$125.98 billion||1.66||$13.13 billion||$3.90||13.14|
Verizon Communications has higher revenue and earnings than PLDT. PLDT is trading at a lower price-to-earnings ratio than Verizon Communications, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
9.0% of PLDT shares are held by institutional investors. Comparatively, 63.4% of Verizon Communications shares are held by institutional investors. 0.1% of Verizon Communications shares are held by company 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.
Verizon Communications beats PLDT on 10 of the 17 factors compared between the two stocks.
PLDT, Inc., formerly Philippine Long Distance Telephone Company (PLDT), is a telecommunications service provider in the Philippines. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines’ fiber optic backbone and wireless and fixed line networks. The Company’s wireless segment provides cellular, wireless broadband and other services, and digital platforms and mobile financial services. Its Fixed Line segment provides local exchange, international long distance, national long distance, data and other network and miscellaneous services under its fixed line business. It offers postpaid and prepaid fixed line services. Its Other business consists of PLDT Communications and Energy Ventures, Inc. (PCEV), an investment holding company. It also focuses on providing wireless voice communications and wireless data communications.
About Verizon Communications
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video, data center and cloud services, security and managed network services, and local and long distance voice services. The Company has combined Yahoo! Inc.’s operating assets with its existing AOL Inc. business to create a new subsidiary, Oath Inc., owns a diverse house of more than 50 media and technology brands. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail.
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