Swisscom (OTCMKTS: SCMWY) and Sprint (NYSE:S) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares Swisscom and Sprint’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Swisscom 13.47% 22.25% 7.22%
Sprint 22.80% 0.69% 0.19%

Risk & Volatility

Swisscom has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Sprint has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of Swisscom shares are owned by institutional investors. Comparatively, 12.7% of Sprint shares are owned by institutional investors. 1.0% of Swisscom shares are owned by insiders. Comparatively, 0.2% of Sprint shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Swisscom pays an annual dividend of $1.93 per share and has a dividend yield of 4.3%. Sprint does not pay a dividend. Swisscom pays out 62.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Swisscom and Sprint, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Swisscom 1 1 1 0 2.00
Sprint 4 16 1 0 1.86

Sprint has a consensus price target of $5.67, suggesting a potential upside of 9.61%. Given Sprint’s higher possible upside, analysts plainly believe Sprint is more favorable than Swisscom.

Valuation & Earnings

This table compares Swisscom and Sprint’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Swisscom $11.85 billion 1.96 $1.60 billion $3.08 14.59
Sprint $32.41 billion 0.64 $7.39 billion N/A N/A

Sprint has higher revenue and earnings than Swisscom.

Summary

Sprint beats Swisscom on 8 of the 14 factors compared between the two stocks.

Swisscom Company Profile

Swisscom AG provides telecommunication services primarily in Switzerland and Italy. The company operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. It offers broadband, TV, fixed-network, and mobile phone subscription services, as well as national and international telephone, and data traffic services for residential customers, and small and medium-sized enterprises. The company also provides cloud, outsourcing, workplace, UCC, mobile phone, networking, business process optimization, SAP, Internet of Things, security and authentication, digital consulting, and software development solutions primarily for banking, hospital, and health insurance industries; fixed and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, it plans, operates, and maintains network infrastructure and related information technology (IT) systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband services, such as voice, data, and TV services, as well as video-on-demand for residential and corporate customers. Further, the company provides mobile phone services; IT and network services, and customized solutions; and online and telephone directories, as well as sells merchandise products. Additionally, it offers collection services for radio and TV license fees; radio and cross platform services for customers in the media field; and securitized radio transmissions services, as well as constructs and maintains wired and wireless networks. Swisscom AG was founded in 1998 and is headquartered in Worblaufen, Switzerland.

Sprint Company Profile

Sprint Corporation, through its subsidiaries, provides various wireless and wireline communications products and services to consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates in two segments, Wireless and Wireline. The Wireless segment offers wireless data communication services, including mobile productivity applications, such as Internet access, messaging, and email services; wireless photo and video offerings; location-based capabilities comprising asset and fleet management, dispatch services, and navigation tools; and mobile entertainment applications. It also provides wireless voice communications services that include local and long-distance wireless voice services, as well as voicemail, call waiting, three-way calling, caller identification, directory assistance, and call forwarding services. In addition, this segment offers voice and data services internationally through roaming arrangements; and customized wireless services to large companies and government agencies, as well as sells wireless devices, broadband devices, connected devices, and accessories to agents and other third-party distributors. The Wireline segment provides wireline voice and data communications, including domestic and international data communications using various protocols, such as multiprotocol label switching technologies, Internet protocol (IP), managed network services, Voice over IP, session initiated protocol, and traditional voice services to other communications companies, and targeted business subscribers. Sprint Corporation offers its services under the Sprint, Boost Mobile, Virgin Mobile, and Assurance Wireless brands. It offers products through its 300 branded retail locations in the Southern California region. The company was founded in 1899 and is headquartered in Overland Park, Kansas. Sprint Corporation is a subsidiary of SoftBank Group Corp.

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