Oi SA (OIBR) and IDT Corporation (IDT) Financial Survey

Oi SA (NYSE: OIBR) and IDT Corporation (NYSE:IDT) are both small-cap integrated telecommunications services – nec companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Oi SA and IDT Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oi SA -24.34% -49.64% -7.06%
IDT Corporation 0.55% 14.31% 4.45%

Analyst Ratings

This is a breakdown of current ratings and target prices for Oi SA and IDT Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oi SA 0 0 0 0 N/A
IDT Corporation 0 0 0 0 N/A

Dividends

IDT Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 5.9%. Oi SA does not pay a dividend. IDT Corporation pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Oi SA has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500. Comparatively, IDT Corporation has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Oi SA and IDT Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Oi SA N/A N/A N/A ($4.31) -1.79
IDT Corporation $1.50 billion 0.21 $8.17 million $0.38 34.19

IDT Corporation has higher revenue and earnings than Oi SA. Oi SA is trading at a lower price-to-earnings ratio than IDT Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

51.4% of IDT Corporation shares are owned by institutional investors. 21.8% of IDT Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

IDT Corporation beats Oi SA on 8 of the 10 factors compared between the two stocks.

Oi SA Company Profile

Oi S.A. is an integrated telecommunications service provider in Brazil. The Company is a switched fixed-line telephony services (STFC) concessionaire. It is engaged in the provision of STFC as a local and intraregional long-distance carrier. Its segments include Residential Services, Personal Mobility, and SMEs/Corporate. It offers a range of integrated telecommunications services that include fixed and mobile, broadband, pay television (TV), data transmission and Internet provider services. The Company’s Residential Services segment is focused on the sale of fixed telephony services, including voice services, data communication services (broadband), and pay TV. The Personal Mobility segment is focused on the sale of mobile telephony services to subscription and prepaid customers, and mobile broadband customer. The SMEs/Corporate segment includes corporate solutions offered to its small, medium-sized, and large corporate customers.

IDT Corporation Company Profile

IDT Corporation is a holding company with operations primarily in the telecommunications and payment industries. The Company’s segments include Telecom Platform Services, Consumer Phone Services and All Other. The Company’s Telecom Platform Services segment provides retail telecommunications and payment offerings, as well as wholesale international long distance traffic termination. The Telecom Platform Services segment markets and distributes multiple communications and payment services across four businesses: Retail Communications, Wholesale Carrier Services, Payment Services and Hosted Platform Solutions. The Company’s Consumer Phone Services segment provides consumer local and long distance services in certain states of the United States. The Telecom Platform Services and Consumer Phone Services segments comprise the Company’s IDT Telecom division. The All Other segment includes its real estate holdings and other smaller businesses.

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