Telefonica (NYSE:TEF – Get Free Report) and COMSovereign (NASDAQ:COMSW – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Profitability
This table compares Telefonica and COMSovereign’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telefonica | -5.23% | 8.54% | 1.96% |
| COMSovereign | N/A | N/A | N/A |
Insider and Institutional Ownership
1.1% of Telefonica shares are held by institutional investors. 0.0% of Telefonica shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telefonica | 4 | 2 | 0 | 0 | 1.33 |
| COMSovereign | 0 | 0 | 0 | 0 | 0.00 |
Telefonica currently has a consensus target price of $4.02, indicating a potential upside of 5.38%. Given Telefonica’s stronger consensus rating and higher probable upside, equities analysts plainly believe Telefonica is more favorable than COMSovereign.
Valuation & Earnings
This table compares Telefonica and COMSovereign”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telefonica | $40.55 billion | 0.53 | -$53.02 million | ($0.41) | -9.29 |
| COMSovereign | $6.17 million | N/A | N/A | N/A | N/A |
COMSovereign has lower revenue, but higher earnings than Telefonica.
Summary
Telefonica beats COMSovereign on 7 of the 8 factors compared between the two stocks.
About Telefonica
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.
About COMSovereign
COMSovereign Holding Corp. provides various solutions for network operators, mobile device carriers, governmental units, and other enterprises worldwide. The company offers packet microwave solutions that transmit broadband voice, video, and data, as well as enable service providers, government agencies, enterprises, and other organizations; harmony enhanced MC; fastback intelligent backhaul radio (IBR); and in-band full-duplex technology. It also provides tethered drones and aerostats for use in intelligence, surveillance, reconnaissance, and tactical communication, as well as communication platform for national defense and security customers; and edge compute capable 4G LTE and 5G network radio. In addition, the company offers repairs, support and maintenance, drones, consulting, and warranties as well as other services. The company was formerly known as Drone Aviation Holding Corp. and changed its name to COMSovereign Holding Corp. in November 2019. COMSovereign Holding Corp. was incorporated in 2014 and is based in Tucson, Arizona.
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