Globe Telecom (OTCMKTS:GTMEY – Get Free Report) and TELUS (NYSE:TU – 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 risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares Globe Telecom and TELUS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Globe Telecom | N/A | N/A | N/A |
| TELUS | -4.51% | 8.01% | 2.21% |
Dividends
Globe Telecom pays an annual dividend of $35.44 per share and has a dividend yield of 153.3%. TELUS pays an annual dividend of $1.21 per share and has a dividend yield of 12.4%. Globe Telecom pays out 39.5% of its earnings in the form of a dividend. TELUS pays out -295.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TELUS has increased its dividend for 5 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globe Telecom | 0 | 0 | 0 | 0 | 0.00 |
| TELUS | 4 | 9 | 3 | 0 | 1.94 |
TELUS has a consensus price target of $15.33, indicating a potential upside of 57.14%. Given TELUS’s stronger consensus rating and higher probable upside, analysts plainly believe TELUS is more favorable than Globe Telecom.
Insider & Institutional Ownership
0.1% of Globe Telecom shares are owned by institutional investors. Comparatively, 49.4% of TELUS shares are owned by institutional investors. 0.1% of TELUS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Globe Telecom and TELUS”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globe Telecom | N/A | N/A | N/A | $89.75 | 0.26 |
| TELUS | $14.71 billion | 1.04 | $796.57 million | ($0.41) | -23.80 |
TELUS has higher revenue and earnings than Globe Telecom. TELUS is trading at a lower price-to-earnings ratio than Globe Telecom, indicating that it is currently the more affordable of the two stocks.
Summary
TELUS beats Globe Telecom on 10 of the 14 factors compared between the two stocks.
About Globe Telecom
Globe Telecom, Inc. provides telecommunications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients in the Philippines. It operates through Mobile Communications Services and Wireline Communication Services segments. The company offers digital wireless communications services under the Globe Postpaid and Prepaid, and Touch Mobile brands; long distance communication or carrier services; broadband, as well as wireline voice and data communication services; and electronic payment and remittance services under the GCash brand. It provides value-added services, such as inbound and outbound short messaging, content downloading, mobile commerce, and other add-on services. The company also provides human capital management, business process, shared service support, Information technology and electronic, software development, IT system integration and consultancy, and advertising services. In addition, it offers marketing and distribution; data management; data center management; capital investment funds management; warehouse and logistics services; and support and shared services, as well as specific solutions for various industries. The company was incorporated in 1935 and is based in Taguig, the Philippines.
About TELUS
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.
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