Contrasting PLDT (PHI) & Orange (ORAN)

PLDT (NYSE: PHI) and Orange (NYSE:ORAN) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares PLDT and Orange’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PLDT 16.32% 25.56% 6.29%
Orange N/A N/A N/A

Insider & Institutional Ownership

9.0% of PLDT shares are held by institutional investors. Comparatively, 1.2% of Orange shares are held by institutional investors. 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.

Risk and Volatility

PLDT has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Orange has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for PLDT and Orange, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PLDT 1 1 2 0 2.25
Orange 2 0 2 0 2.00

Earnings and Valuation

This table compares PLDT and Orange’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PLDT $3.49 billion 1.79 $422.12 million $2.43 11.92
Orange $45.29 billion 0.99 $3.25 billion N/A N/A

Orange has higher revenue and earnings than PLDT.

Dividends

PLDT pays an annual dividend of $1.23 per share and has a dividend yield of 4.2%. Orange pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. PLDT pays out 50.6% of its earnings in the form of a dividend.

Summary

PLDT beats Orange on 8 of the 11 factors compared between the two stocks.

About PLDT

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.

About Orange

Orange SA is a telecommunications operator. The Company also provides telecommunication services to multinational companies, under the brand Orange Business Services. The Company’s segments include France, Spain, Poland, Belgium and Luxembourg, Central European countries, Africa and Middle East, Enterprise, and International Carriers & Shared Services. The Company provides consumers, businesses and other telecommunications operators with a range of services, including fixed telephony and mobile telecommunications, data transmission and other value-added services, mainly in Europe, Africa and the Middle East. The Company offers fixed-line telephony, mobile telephony and Internet services in France. The Company offers fixed-line telephony, mobile telephony and Internet services in Spain. The Company offers fixed-line and mobile telephony, and Internet services in Poland. The Company operates through Mobistar and Groupama Banque SA.

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