Financial Review: Telefónica (NYSE:TEF) & Powerstorm (OTCMKTS:PSTO)

Powerstorm (OTCMKTS:PSTO) and Telefónica (NYSE:TEF) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Powerstorm and Telefónica, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerstorm	0	0	0	0	0.00
Telefónica	1	4	0	0	1.80

Institutional & Insider Ownership

1.1% of Telefónica shares are held by institutional investors. 0.0% of Telefónica shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Powerstorm has a beta of -0.73, indicating that its stock price is 173% less volatile than the S&P 500. Comparatively, Telefónica has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Earnings & Valuation

This table compares Powerstorm and Telefónica”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powerstorm	N/A	N/A	N/A	N/A	N/A
Telefónica	$40.57 billion	0.57	-$965.41 million	($0.26)	-15.58

Powerstorm has higher earnings, but lower revenue than Telefónica.

Profitability

This table compares Powerstorm and Telefónica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powerstorm	N/A	N/A	N/A
Telefónica	-2.84%	10.10%	2.54%

Summary

Telefónica beats Powerstorm on 7 of the 8 factors compared between the two stocks.

About Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.

About Telefónica

Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, such as mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. It also provides fixed telecommunication services, including PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; and telephony information services, as well as leases and sells handset equipment and telephony information services. It also provides Internet and broadband multimedia services comprising internet service provider, portal and network, retail and wholesale broadband access, narrowband switched access, security, internet through fibre to the home, and voice over internet protocol services. In addition, the company offers leased line, virtual private network, fibre optics, web hosting and application, managed hosting, content delivery, outsourcing and application, desktop, and system integration and professional services. Further, the company offers wholesale services for telecommunication operators, including domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Additionally, it provides video/TV services; smart connectivity and services, and consumer IoT products; financial and other payment, security, cloud, advertising, big data, and digital experience services; Aura; open gateway, living apps; smart Wi-Fi, Phoenix, NT, Solar 360, and Movistar Home devices. Telefónica, S.A. was incorporated in 1924 and is headquartered in Madrid, Spain.