BT Group PLC (NYSE: BT) and BCE (NYSE:BCE) are both large-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Volatility and Risk
BT Group PLC has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, BCE has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
This table compares BT Group PLC and BCE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BT Group PLC||7.14%||39.24%||6.77%|
Institutional & Insider Ownership
1.0% of BT Group PLC shares are held by institutional investors. Comparatively, 42.7% of BCE shares are held by institutional investors. 0.2% of BCE shares are held by company insiders. 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.
BT Group PLC pays an annual dividend of $0.95 per share and has a dividend yield of 4.9%. BCE pays an annual dividend of $2.28 per share and has a dividend yield of 4.9%. BT Group PLC pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BCE pays out 93.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BCE has increased its dividend for 5 consecutive years. BT Group PLC is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares BT Group PLC and BCE’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BT Group PLC||$31.83 billion||1.20||$9.05 billion||$1.04||18.50|
|BCE||$18.26 billion||2.31||$6.84 billion||$2.44||19.19|
BT Group PLC has higher revenue and earnings than BCE. BT Group PLC is trading at a lower price-to-earnings ratio than BCE, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for BT Group PLC and BCE, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BT Group PLC||3||7||8||0||2.28|
BT Group PLC presently has a consensus price target of $358.82, suggesting a potential upside of 1,764.99%. BCE has a consensus price target of $57.80, suggesting a potential upside of 23.43%. Given BT Group PLC’s higher possible upside, equities analysts plainly believe BT Group PLC is more favorable than BCE.
BT Group PLC beats BCE on 9 of the 17 factors compared between the two stocks.
About BT Group PLC
BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as managed networked information technology (IT) solutions and cyber security protection. Its segments include Consumer, which provides fixed-voice, broadband, TV and mobile services; EE, which is a mobile network operator in the United Kingdom and provides mobile and fixed communications services to consumers; Business and Public Sector, which provides communications and IT services to businesses and the public sector in the United Kingdom and the Republic of Ireland (RoI) ;Global Services, which provides managed networked IT services to corporate customers; Wholesale and Ventures, which provides fixed and mobile services to communications providers (CPs); and Openreach, which provides copper and fiber connections between its exchanges and homes and businesses.
BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.
Receive News & Ratings for BT Group PLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BT Group PLC and related companies with MarketBeat.com's FREE daily email newsletter.