Analyzing Telecom Italia (TI) and Shaw Communications (SJR)

Telecom Italia (NYSE: TI) and Shaw Communications (NYSE:SJR) are both large-cap utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Telecom Italia and Shaw Communications’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telecom Italia $21.06 billion 0.92 $2.00 billion N/A N/A
Shaw Communications $3.70 billion 2.81 $644.63 million $0.94 23.17

Telecom Italia has higher revenue and earnings than Shaw Communications.

Profitability

This table compares Telecom Italia and Shaw Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telecom Italia N/A N/A N/A
Shaw Communications 17.34% 10.19% 3.99%

Volatility & Risk

Telecom Italia has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Shaw Communications has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Telecom Italia and Shaw Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Italia 0 2 1 0 2.33
Shaw Communications 1 4 1 0 2.00

Telecom Italia currently has a consensus target price of $1.80, suggesting a potential downside of 80.37%. Shaw Communications has a consensus target price of $27.33, suggesting a potential upside of 25.50%. Given Shaw Communications’ higher probable upside, analysts plainly believe Shaw Communications is more favorable than Telecom Italia.

Dividends

Shaw Communications pays an annual dividend of $0.94 per share and has a dividend yield of 4.3%. Telecom Italia does not pay a dividend. Shaw Communications pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

0.7% of Telecom Italia shares are held by institutional investors. Comparatively, 52.4% of Shaw Communications shares are held by institutional investors. 1.0% of Shaw Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Shaw Communications beats Telecom Italia on 9 of the 13 factors compared between the two stocks.

Telecom Italia Company Profile

Telecom Italia S.p.A. (Telecom Italia) operates fixed voice and data infrastructure in Italy, and provides mobile network platforms. The Company focuses on various areas of digital services, including Enriched Communication, Trusted Digital Life, Business Life, Indoor Life, Mobile Open Life and Digital Entertainment. Its segments include Consumer, Business, National Wholesale and Other. It is engaged in developing various projects in areas, including Smart Green, Social Reading, Solutions for good schooling, Digital tourism 2.0, Smart Home, FriendTV and Big Data. Smart Green is the assessment of projects connected with the environment and potential partnerships with the local government offices for the monitoring of air in public offices and urban areas, using networks of sensors connected to the Company’s Cloud. The Company is involved, either alone or in partnership with external partners, in devising and developing healthcare services at national, regional and local level.

Shaw Communications Company Profile

Shaw Communications Inc. (Shaw) is a diversified connectivity provider. The Company operates through four divisions: Consumer, Wireless, Business Network Services and Business Infrastructure Services. Under the Consumer division, the Company offers Cable telecommunications and Satellite video services to residential customers. Its Business Network Services division offers data networking, Cable telecommunications, Satellite video and fleet tracking services to businesses and public sector entities. Its Business Infrastructure Services division offers data center colocation, cloud technology and managed information technology (IT) solutions to businesses. The Company offers wireless services for voice and data communications through its Wireless division. Its wireline services offer approximately 120 high definition (HD) channels and over 10,000 on-demand, pay-per-view and subscription movie and television programming titles.

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