Otelco (NASDAQ:OTEL) vs. Telefonica Brasil (NASDAQ:VIV) Financial Survey

Otelco (NASDAQ:OTEL) and Telefonica Brasil (NYSE:VIV) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Otelco and Telefonica Brasil, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Otelco 0 0 0 0 N/A
Telefonica Brasil 0 1 5 0 2.83

Telefonica Brasil has a consensus price target of $11.00, indicating a potential upside of 23.46%. Given Telefonica Brasil’s higher probable upside, analysts plainly believe Telefonica Brasil is more favorable than Otelco.

Valuation & Earnings

This table compares Otelco and Telefonica Brasil’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Otelco $62.77 million 0.62 $7.80 million N/A N/A
Telefonica Brasil $10.98 billion 1.37 $1.27 billion $0.69 12.91

Telefonica Brasil has higher revenue and earnings than Otelco.

Insider and Institutional Ownership

11.0% of Otelco shares are owned by institutional investors. Comparatively, 8.1% of Telefonica Brasil shares are owned by institutional investors. 7.8% of Otelco shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Otelco has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Telefonica Brasil has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Otelco and Telefonica Brasil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Otelco 11.96% 37.72% 6.09%
Telefonica Brasil 10.29% 6.31% 4.05%

Otelco Company Profile

Otelco Inc. provides a range of telecommunications services on a retail and wholesale basis. The company offers local services, including voice lines that provide local dial tone and calling features, such as caller identification, call waiting, call forwarding, and voicemail; long distance services; billing and collection services for other carriers under contract; and directory advertising services. It also provides network access services comprising the origination, transportation, and termination of calls of long distance, wireless, and other interexchange carriers; digital high-speed data lines and ancillary services, such as Web hosting and computer virus protection; and basic, digital, high-definition, digital video recording, video on demand, and pay per view cable television services. In addition, it offers Internet protocol television; wireless security systems and system monitoring services; and private/hybrid cloud hosting services, as well as consulting and professional IT engineering services for mission-critical software applications for small and mid-sized companies. Further, the company rents fiber to transport data and other telecommunications services. It primarily serves business and residential customers residing in and adjacent to the exchanges in Alabama, Maine, Massachusetts, Missouri, Vermont, and West Virginia; and business customers in Maine and New Hampshire. As of March 6, 2019, it operated approximately 99,000 voice and data access lines. The company was founded in 1998 and is based in Oneonta, Alabama.

Telefonica Brasil Company Profile

Telefônica Brasil S.A. provides mobile and fixed telecommunications services to residential and corporate customers in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband Internet access through 3G, 4G, and 4.5G, as well as mobile value-added services and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through direct to home satellite technology, IPTV, and cable, as well as pay-per-view and video on demand services; network services, such as rental of facilities; other services comprising Internet access, private network connectivity, computer equipment leasing, extended, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc. Telefônica Brasil S.A. markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and telesales. The company was formerly known as Telecomunicações de São Paulo S.A. – TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil. Telefônica Brasil S.A. is a subsidiary of SP Telecomunicações Participações Ltda.

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