Telefonica Brasil (NYSE:VIV) & Telecom Italia (OTCMKTS:TIIAY) Head-To-Head Comparison

Telefonica Brasil (NYSE:VIV) and Telecom Italia (OTCMKTS:TIIAY) are both large-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Telefonica Brasil and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefonica Brasil	10.49%	9.32%	5.04%
Telecom Italia	N/A	N/A	N/A

Institutional & Insider Ownership

5.2% of Telefonica Brasil shares are owned by institutional investors. 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.

Earnings & Valuation

This table compares Telefonica Brasil and Telecom Italia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefonica Brasil	$10.67 billion	1.95	$1.10 billion	$0.74	17.28
Telecom Italia	$15.88 billion	1.14	-$660.08 million	N/A	N/A

Telefonica Brasil has higher earnings, but lower revenue than Telecom Italia.

Analyst Ratings

This is a summary of current ratings for Telefonica Brasil and Telecom Italia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefonica Brasil	4	5	2	0	1.82
Telecom Italia	0	2	1	1	2.75

Telefonica Brasil currently has a consensus price target of $14.36, indicating a potential upside of 12.32%. Given Telefonica Brasil’s higher probable upside, research analysts plainly believe Telefonica Brasil is more favorable than Telecom Italia.

Risk & Volatility

Telefonica Brasil has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Summary

Telefonica Brasil beats Telecom Italia on 8 of the 12 factors compared between the two stocks.

About Telefonica Brasil

Telefônica Brasil S.A., together with its subsidiaries, operates as a mobile telecommunications company in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G, as well as mobile value-added and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through IPTV technologies; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.