Financial Analysis: Telenor (TELNY) versus The Competition

Telenor (OTCMKTS: TELNY) is one of 73 publicly-traded companies in the “Telephone communication, except radio” industry, but how does it contrast to its peers? We will compare Telenor to similar businesses based on the strength of its earnings, analyst recommendations, risk, profitability, institutional ownership, dividends and valuation.

Analyst Recommendations

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This is a breakdown of recent ratings for Telenor and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telenor 1 0 0 0 1.00
Telenor Competitors 609 1860 1943 98 2.34

As a group, “Telephone communication, except radio” companies have a potential upside of 65.43%. Given Telenor’s peers stronger consensus rating and higher possible upside, analysts plainly believe Telenor has less favorable growth aspects than its peers.

Profitability

This table compares Telenor and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telenor 9.74% 27.21% 7.77%
Telenor Competitors -12.56% -11.21% -0.99%

Valuation & Earnings

This table compares Telenor and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Telenor $15.10 billion $1.45 billion 17.41
Telenor Competitors $17.40 billion $2.02 billion 17.78

Telenor’s peers have higher revenue and earnings than Telenor. Telenor is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Telenor pays an annual dividend of $0.75 per share and has a dividend yield of 3.4%. Telenor pays out 59.1% of its earnings in the form of a dividend. As a group, “Telephone communication, except radio” companies pay a dividend yield of 4.0% and pay out 72.5% of their earnings in the form of a dividend.

Insider and Institutional Ownership

0.0% of Telenor shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Telephone communication, except radio” companies are owned by institutional investors. 7.3% of shares of all “Telephone communication, except radio” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Telenor has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Telenor’s peers have a beta of 0.59, indicating that their average stock price is 41% less volatile than the S&P 500.

Summary

Telenor peers beat Telenor on 10 of the 15 factors compared.

Telenor Company Profile

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its products and services primarily include mobile communication, fixed line communication, and broadcasting activities. The company's mobile communication services comprise voice, data, Internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcasting services include DTH, broadcasting and data communication services through satellite, terrestrial radio and TV transmission, and encryption and conditional access services for TV distribution. The company also provides wholesale services to the operators; and enables the operators to route international voice, messaging, data and signaling traffic through a single connection to a global network, as well as handles international roaming relationships. In addition, it offers digital services that include international communication services and machine to machine communication, as well as Internet based services, digital media advertising, and financial services. Further, the company sells mobile devices; and leases base station sites, equipment primarily in the satellite business, and properties. Telenor ASA was founded in 1885 and is headquartered in Fornebu, Norway.

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