TELE2 AB/ADR (OTCMKTS:TLTZY) and Shenandoah Telecommunications (NASDAQ:SHEN) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Risk and Volatility
TELE2 AB/ADR has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Shenandoah Telecommunications has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
This is a summary of current ratings and price targets for TELE2 AB/ADR and Shenandoah Telecommunications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shenandoah Telecommunications has a consensus target price of $48.33, suggesting a potential upside of 47.40%. Given Shenandoah Telecommunications’ stronger consensus rating and higher probable upside, analysts clearly believe Shenandoah Telecommunications is more favorable than TELE2 AB/ADR.
Valuation and Earnings
This table compares TELE2 AB/ADR and Shenandoah Telecommunications’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TELE2 AB/ADR||$2.65 billion||2.66||$98.18 million||$0.23||30.43|
|Shenandoah Telecommunications||$630.85 million||2.59||$46.60 million||$0.93||35.26|
TELE2 AB/ADR has higher revenue and earnings than Shenandoah Telecommunications. TELE2 AB/ADR is trading at a lower price-to-earnings ratio than Shenandoah Telecommunications, indicating that it is currently the more affordable of the two stocks.
TELE2 AB/ADR pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. Shenandoah Telecommunications pays an annual dividend of $0.27 per share and has a dividend yield of 0.8%. TELE2 AB/ADR pays out 34.8% of its earnings in the form of a dividend. Shenandoah Telecommunications pays out 29.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Shenandoah Telecommunications has increased its dividend for 6 consecutive years.
Insider and Institutional Ownership
49.3% of Shenandoah Telecommunications shares are owned by institutional investors. 4.7% of Shenandoah Telecommunications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares TELE2 AB/ADR and Shenandoah Telecommunications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Shenandoah Telecommunications beats TELE2 AB/ADR on 11 of the 17 factors compared between the two stocks.
TELE2 AB/ADR Company Profile
Tele2 AB (publ), a telecom operator, provides telecommunication services for residential and business customers. The company offers mobile voice telephony, handset data, messaging, and value-added services, such as handset insurance, antivirus, and content services; mobile broadband services; and fixed voice and broadband, TV, and fixed and mobile telephony services. It also provides business-to-business telecommunication services, such as secure and encrypted connections, company-specific mobile network access points, etc.; cloud services comprising voice switching, data center services, business productivity solutions, etc.; and data connectivity, Ethernet connectivity, VPN services, and international IP connectivity services, as well as IoT solutions. The company serves approximately 17 million customers in 8 countries. It provides services in Sweden, Lithuania, Latvia, Estonia, Croatia, Germany, and internationally. Tele2 AB (publ) was founded in 1993 and is headquartered in Stockholm, Sweden.
Shenandoah Telecommunications Company Profile
Shenandoah Telecommunications Company, through its subsidiaries, primarily provides wireless, cable, and wireline telecommunications services to customers and other telecommunications providers. The company operates in three segments: Wireless, Cable, and Wireline. The Wireless segment provides digital wireless mobile services; and wireless mobility communications network products and services. It owns 208 cell site towers built on leased land and owned land; and leases space on towers to affiliated and non-affiliated third party wireless service providers. This segment provides its services in central and western Virginia, south-central Pennsylvania, West Virginia, Maryland, North Carolina, Kentucky, Tennessee, and Ohio. The Cable segment offers video, broadband, and voice services in Virginia, West Virginia, and western Maryland; and leases fiber optic facilities. The Wireline segment provides regulated and unregulated voice services, Internet broadband, and long distance access services, as well as leases fiber optic facilities throughout portions of Virginia, West Virginia, Maryland, and Pennsylvania. Shenandoah Telecommunications Company also maintains an interstate fiber optic network; and offers unregulated communications equipment sales and services. The company provides its products and services under the Sprint and Shentel brands. Shenandoah Telecommunications Company was founded in 1902 and is headquartered in Edinburg, Virginia.
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