TeliaSonera (TLSNY) versus The Competition Financial Contrast

TeliaSonera (OTCMKTS:TLSNY) is one of 33 public companies in the “Wireless Telecommunication Services” industry, but how does it compare to its rivals? We will compare TeliaSonera to similar businesses based on the strength of its dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Dividends

TeliaSonera pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. TeliaSonera pays out 71.4% of its earnings in the form of a dividend. As a group, “Wireless Telecommunication Services” companies pay a dividend yield of 2.9% and pay out 43.8% of their earnings in the form of a dividend. TeliaSonera lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares TeliaSonera and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TeliaSonera	6.54%	9.82%	2.83%
TeliaSonera Competitors	7.82%	8.21%	3.23%

Insider and Institutional Ownership

48.6% of shares of all “Wireless Telecommunication Services” companies are owned by institutional investors. 23.2% of shares of all “Wireless Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

TeliaSonera has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, TeliaSonera’s rivals have a beta of 1.99, indicating that their average share price is 99% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for TeliaSonera and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeliaSonera	1	2	0	1	2.25
TeliaSonera Competitors	323	918	1459	141	2.50

As a group, “Wireless Telecommunication Services” companies have a potential upside of 37.44%. Given TeliaSonera’s rivals stronger consensus rating and higher possible upside, analysts clearly believe TeliaSonera has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares TeliaSonera and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TeliaSonera	$8.28 billion	$360.26 million	34.96
TeliaSonera Competitors	$17.91 billion	$2.68 billion	27.98

TeliaSonera’s rivals have higher revenue and earnings than TeliaSonera. TeliaSonera is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

TeliaSonera rivals beat TeliaSonera on 12 of the 15 factors compared.

TeliaSonera Company Profile

TeliaSonera, now known as Telia Company, is a telecommunications and digital services provider headquartered in Sweden. The company was formed in 2002 through the merger of Sweden’s Telia and Finland’s Sonera, and adopted the Telia Company name in 2016. Telia provides mobile and fixed-line communications, broadband, television and related digital services to consumers and businesses. Its business also includes network and connectivity solutions for organizations. The company serves customers across the Nordic and Baltic regions, including Sweden, Finland, Norway, Denmark, Estonia, Latvia and Lithuania.