OI (OTCMKTS:OIBRQ) and Telstra (OTCMKTS:TLSYY) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Earnings and Valuation

This table compares OI and Telstra’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OI $4.55 billion 0.01 -$2.28 billion N/A N/A
Telstra $15.92 billion 2.02 $1.22 billion $0.51 26.56

Telstra has higher revenue and earnings than OI.

Risk and Volatility

OI has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500. Comparatively, Telstra has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for OI and Telstra, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OI 0 1 1 0 2.50
Telstra 0 0 2 0 3.00

Insider and Institutional Ownership

0.0% of OI shares are owned by institutional investors. Comparatively, 0.1% of Telstra shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares OI and Telstra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OI -76.90% -122.94% -19.34%
Telstra N/A N/A N/A

Summary

Telstra beats OI on 10 of the 11 factors compared between the two stocks.

About OI

Oi S.A., a switched fixed-line telephony services concessionaire, provides integrated telecommunication services in Brazil. The company offers fixed telephony services, including voice, data communication, and pay TV services; local and intraregional long-distance carrier services; domestic and international long-distance services; and mobile voice and data telecommunications services, as well as value-added services. It also provides wholesale interconnection, network usage, and traffic transportation services to other telecommunications providers. In addition, the company offers financial, payment and credit systems, network, data traffic, call center and telemarketing, and Wi-Fi Internet services; and business consulting and management services, as well as preparation of projects and economic studies. Further, the company is involved in raising funds in the international market; telephone directory publishing and operation of related databases; investment management, property investment, and receivables portfolio management activities; and the purchase and sale of real estate. As of December 31, 2019, it had 7.0 million residential fixed lines in service customers; 4.2 million asymmetric digital subscriber line subscribers; 1.45 million residential pay TV subscribers; and 36.8 million mobile subscribers. It serves residential, subscription and prepaid, and mobile broadband customers, as well as small, medium-sized, and large corporate customers. The company was formerly known as Brasil Telecom S.A. and changed its name to Oi S.A. in February 2012. Oi S.A. was founded in 1998 and is headquartered in Rio de Janeiro, Brazil. On June 20, 2016, Oi S.A. along with its subsidiaries filed for bankruptcy protection.

About Telstra

Telstra Corporation Limited provides telecommunications and information services to businesses, governments, and individuals in Australia and internationally. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. The company offers telecommunication products, services, and solutions across mobiles, fixed and mobile broadband, telephony and Pay TV/IPTV, and digital content; and online self-service capabilities, as well as operates inbound and outbound call centers, owned and licensed Telstra shops, and the Telstra dealership network. It also provides sales and contract management; and product management services for data and Internet protocol networks, mobility services, and network applications and services products, such as managed network, unified communications, cloud, industry solutions, and integrated services and monitoring. In addition, the company engages in the development of industry vertical solutions; planning, design, engineering architecture, and construction of Telstra networks, technology, and information technology solutions; and delivering network technologies. Further, it provides telecommunication products and services through its networks and related support systems to other carriers, carriage service providers, and Internet service providers; access to fixed network infrastructure assets; disconnection services; and network services under the Infrastructure Services Agreement and commercial contracts, as well as holds fixed network infrastructure, including data centers, non-mobiles related domestic fiber, copper, HFC cable, international subsea cables, exchanges, poles, ducts, and pipes. The company was formerly known as Australian and Overseas Telecommunications Corporation Limited and changed its name to Telstra Corporation Limited in April 1993. Telstra Corporation Limited was founded in 1901 and is based in Melbourne, Australia.

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