Contrasting Mobile TeleSystems OJSC (MBT) & Its Rivals

Mobile TeleSystems OJSC (NYSE: MBT) is one of 36 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its rivals? We will compare Mobile TeleSystems OJSC to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Insider & Institutional Ownership

32.1% of Mobile TeleSystems OJSC shares are held by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 1.0% of Mobile TeleSystems OJSC shares are held by company insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Mobile TeleSystems OJSC and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Mobile TeleSystems OJSC $14.03 billion $4.86 billion 11.66
Mobile TeleSystems OJSC Competitors $27.20 billion $8.08 billion -5.88

Mobile TeleSystems OJSC’s rivals have higher revenue and earnings than Mobile TeleSystems OJSC. Mobile TeleSystems OJSC 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.

Volatility & Risk

Mobile TeleSystems OJSC has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Mobile TeleSystems OJSC’s rivals have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.

Profitability

This table compares Mobile TeleSystems OJSC and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mobile TeleSystems OJSC 12.42% 40.25% 10.03%
Mobile TeleSystems OJSC Competitors -999.64% 3.14% -6.43%

Dividends

Mobile TeleSystems OJSC pays an annual dividend of $0.72 per share and has a dividend yield of 7.1%. Mobile TeleSystems OJSC pays out 82.8% 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, “Wireless Telecommunications Services” companies pay a dividend yield of 3.1% and pay out 62.1% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Mobile TeleSystems OJSC and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mobile TeleSystems OJSC 0 2 3 0 2.60
Mobile TeleSystems OJSC Competitors 575 1709 1796 70 2.33

Mobile TeleSystems OJSC presently has a consensus target price of $10.97, indicating a potential upside of 8.15%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 22.15%. Given Mobile TeleSystems OJSC’s rivals higher possible upside, analysts clearly believe Mobile TeleSystems OJSC has less favorable growth aspects than its rivals.

Summary

Mobile TeleSystems OJSC beats its rivals on 8 of the 15 factors compared.

About Mobile TeleSystems OJSC

Mobile TeleSystems Public Joint Stock Company, formerly Mobile TeleSystems Open Joint Stock Company, is a provider of telecommunications services. The Company provides mobile and fixed line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed line segment includes fixed line operations carried out in Moscow by the Company’s subsidiary MGTS. Its Ukraine segment includes mobile and fixed line operations carried out across multiple regions of Ukraine.

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