Contrasting TALKTALK TELECO/ADR (OTCMKTS:TKTCY) and TIM Participacoes (OTCMKTS:TSU)

TALKTALK TELECO/ADR (OTCMKTS:TKTCY) and TIM Participacoes (NYSE:TSU) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

TALKTALK TELECO/ADR has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, TIM Participacoes has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for TALKTALK TELECO/ADR and TIM Participacoes, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TALKTALK TELECO/ADR 0 0 0 0 N/A
TIM Participacoes 1 2 3 0 2.33

TIM Participacoes has a consensus price target of $26.88, indicating a potential upside of 114.31%. Given TIM Participacoes’ higher probable upside, analysts clearly believe TIM Participacoes is more favorable than TALKTALK TELECO/ADR.

Dividends

TALKTALK TELECO/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 1.8%. TIM Participacoes pays an annual dividend of $0.18 per share and has a dividend yield of 1.4%. TIM Participacoes pays out 17.5% of its earnings in the form of a dividend. TIM Participacoes has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares TALKTALK TELECO/ADR and TIM Participacoes’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TALKTALK TELECO/ADR $2.14 billion 0.73 $42.01 million N/A N/A
TIM Participacoes $4.22 billion 1.44 $917.85 million $1.03 12.17

TIM Participacoes has higher revenue and earnings than TALKTALK TELECO/ADR.

Profitability

This table compares TALKTALK TELECO/ADR and TIM Participacoes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TALKTALK TELECO/ADR N/A N/A N/A
TIM Participacoes 19.81% 8.71% 4.85%

Insider and Institutional Ownership

11.5% of TIM Participacoes shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

TIM Participacoes beats TALKTALK TELECO/ADR on 11 of the 13 factors compared between the two stocks.

TALKTALK TELECO/ADR Company Profile

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

TIM Participacoes Company Profile

TIM Participações S.A. provides telecommunication services in Brazil. It offers mobile voice and data, broadband Internet access, value-added, and other telecommunications services and products. The company offers prepaid and postpaid services; corporate solutions for mobile or fixed services, as well as mobile-to-mobile services; value-added services; financial and other services; digital channels; and customer services. It also provides landline telephone services, domestic long-distance and international long-distance voice services, personal mobile services, and multimedia communication services. In addition, the company sells various mobile handsets and accessories through its dealer network, which includes its own stores, exclusive franchises, and authorized dealers; and offers co-billing services to other telecommunication service providers. As of December 31, 2018, it served a subscriber base of 55.9 million customers; and had approximately 12.2 thousand points of sale, including 156 company owned stores, as well as had approximately 310 thousand points of sales to access prepaid phone services through supermarkets, newsstands, and other small retailers. The company was formerly known as Tele Celular Sul Participações S.A. and changed its name to TIM Participações S.A. in August 2004. The company was founded in 1998 and is headquartered in Rio de Janeiro, Brazil. TIM Participações S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.

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