LICT (OTCMKTS:LICT) versus Telecom Italia (OTCMKTS:TIIAY) Critical Analysis

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

Risk & Volatility

LICT has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares LICT and Telecom Italia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LICT	$141.40 million	1.56	$12.19 million	$764.00	14.40
Telecom Italia	$15.88 billion	1.06	-$660.08 million	N/A	N/A

LICT has higher earnings, but lower revenue than Telecom Italia.

Profitability

This table compares LICT and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LICT	8.55%	N/A	N/A
Telecom Italia	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for LICT and Telecom Italia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LICT	0	0	0	0	0.00
Telecom Italia	0	3	1	1	2.60

Summary

Telecom Italia beats LICT on 5 of the 8 factors compared between the two stocks.

About LICT

LICT Corporation, together with its subsidiaries, provides broadband, voice, and video services to residential, commercial, and governmental customers. The company offers high speed broadband services, including internet access through copper-based digital subscriber lines, fiber optic facilities, fixed wireless, and cable modems; video services through traditional cable television services and internet protocol television services; voice over internet protocol services; wireless voice communications services; and other telecommunications related services. It operates in California, Iowa, Kansas, Michigan, New Mexico, Utah, and Wisconsin. The company was formerly known as Lynch Interactive Corporation and changed its name to LICT Corporation in March 2007. LICT Corporation was incorporated in 1996 and is based in Rye, New York.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. 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 top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.