TELUS Corporation (NYSE: TU) and PLDT (NYSE:PHI) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
TELUS Corporation pays an annual dividend of $1.58 per share and has a dividend yield of 4.4%. PLDT pays an annual dividend of $1.23 per share and has a dividend yield of 3.8%. TELUS Corporation pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PLDT pays out 54.2% of its earnings in the form of a dividend.
This table compares TELUS Corporation and PLDT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
50.8% of TELUS Corporation shares are held by institutional investors. Comparatively, 9.5% of PLDT shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares TELUS Corporation and PLDT’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TELUS Corporation||$10.66 billion||2.01||$3.37 billion||$1.58||22.87|
|PLDT||$3.12 billion||2.25||$1.26 billion||$2.27||14.32|
TELUS Corporation has higher revenue and earnings than PLDT. PLDT is trading at a lower price-to-earnings ratio than TELUS Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
TELUS Corporation has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, PLDT has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for TELUS Corporation and PLDT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TELUS Corporation presently has a consensus target price of $45.00, suggesting a potential upside of 24.55%. Given TELUS Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe TELUS Corporation is more favorable than PLDT.
TELUS Corporation beats PLDT on 8 of the 15 factors compared between the two stocks.
TELUS Corporation Company Profile
TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.
PLDT Company Profile
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.
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