Analyzing Orange (ORAN) & Its Rivals

Orange (NYSE: ORAN) is one of 48 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its peers? We will compare Orange to similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

1.2% of Orange shares are owned by institutional investors. Comparatively, 59.8% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 5.0% of shares of all “Integrated Telecommunications Services” companies are owned by insiders. 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.

Valuation and Earnings

This table compares Orange and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Orange $45.29 billion $3.25 billion 88.25
Orange Competitors $15.94 billion $1.27 billion 12.64

Orange has higher revenue and earnings than its peers. Orange is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Orange pays an annual dividend of $0.52 per share and has a dividend yield of 2.9%. Orange pays out 260.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 4.2% and pay out 528.9% of their earnings in the form of a dividend.

Risk and Volatility

Orange has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Orange’s peers have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Orange and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orange 1 1 3 0 2.40
Orange Competitors 602 1711 2043 66 2.36

As a group, “Integrated Telecommunications Services” companies have a potential upside of 54.59%. Given Orange’s peers higher possible upside, analysts plainly believe Orange has less favorable growth aspects than its peers.

Profitability

This table compares Orange and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orange N/A N/A N/A
Orange Competitors 2.33% -1.12% 1.95%

Summary

Orange peers beat Orange on 8 of the 15 factors compared.

Orange Company Profile

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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