Head-To-Head Contrast: Calix (NYSE:CALX) vs. Telecom Italia (NYSE:TIIAY)

Telecom Italia (OTCMKTS:TIIAY) and Calix (NYSE:CALX) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Telecom Italia and Calix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Italia 0 0 0 0 N/A
Calix 0 0 2 0 3.00

Calix has a consensus price target of $8.50, suggesting a potential upside of 50.44%. Given Calix’s higher possible upside, analysts plainly believe Calix is more favorable than Telecom Italia.

Valuation & Earnings

This table compares Telecom Italia and Calix’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telecom Italia $22.77 billion 0.45 -$1.67 billion ($0.71) -6.79
Calix $441.32 million 0.71 -$19.30 million ($0.33) -17.12

Calix has lower revenue, but higher earnings than Telecom Italia. Calix is trading at a lower price-to-earnings ratio than Telecom Italia, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Telecom Italia and Calix’s 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
Calix -4.66% -8.70% -4.11%

Volatility and Risk

Telecom Italia has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Calix has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

0.8% of Telecom Italia shares are held by institutional investors. Comparatively, 63.7% of Calix shares are held by institutional investors. 18.6% of Calix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Calix beats Telecom Italia on 7 of the 12 factors compared between the two stocks.

Telecom Italia Company Profile

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, South America, and the Mediterranean Basin. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed and mobile telecommunications operators; provision of infrastructure for housing radio transmission equipment of mobile telephone networks; and development, engineering, building, and operation of network infrastructures, information technology (IT), real estate properties, and plant engineering. In addition, it engages in customer care, operating credit support, loyalty, and retention activities; and staff functions and other support activities. Further, the company offers office products and services for IT sector. The company was founded in 1908 and is headquartered in Rome, Italy.

Calix Company Profile

Calix, Inc., together with its subsidiaries, provides cloud and software platforms, systems and services required to deliver the unified access network. The company's cloud and software platforms, systems, and services enable communication service providers (CSP) to provide a range of services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. Its premises systems allow CSPs to master the complexity of the smart home and business, and offer services to their device-enabled subscribers. The company offers Calix Cloud, an analytics platform that leverages network data and subscriber behavioral data to deliver intelligence to communications professionals via role specific dashboards; Calix Marketing Cloud that enables marketers to move away from a one-size-fits-all approach to marketing and deliver personalized campaigns; Calix Support Cloud; EXOS, a carrier class premises operating system and software platform that supports residential, business, and mobile subscribers; and AXOS, a software platform built for the specific needs of the access network. The company markets its products in the United States, the Middle East, Canada, Europe, the Caribbean, and internationally through its direct sales force and resellers. Calix, Inc. was founded in 1999 and is headquartered in San Jose, California.

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