Analyzing Hellenic Telecom Organization (HLTOY) and Its Peers

Hellenic Telecom Organization (OTCMKTS:HLTOY) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it contrast to its peers? We will compare Hellenic Telecom Organization to similar companies based on the strength of its profitability, analyst recommendations, valuation, institutional ownership, earnings, risk and dividends.

Insider and Institutional Ownership

32.5% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 18.3% of shares of all “Diversified Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Hellenic Telecom Organization and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hellenic Telecom Organization	1	1	1	0	2.00
Hellenic Telecom Organization Competitors	1749	5336	7751	383	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 20.98%. Given Hellenic Telecom Organization’s peers stronger consensus rating and higher probable upside, analysts clearly believe Hellenic Telecom Organization has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Hellenic Telecom Organization and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hellenic Telecom Organization	$3.92 billion	$566.95 million	13.00
Hellenic Telecom Organization Competitors	$24.15 billion	$893.66 million	-166.20

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

Profitability

This table compares Hellenic Telecom Organization and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hellenic Telecom Organization	15.83%	30.19%	12.14%
Hellenic Telecom Organization Competitors	-11.92%	-217.42%	-3.37%

Dividends

Hellenic Telecom Organization pays an annual dividend of $0.43 per share and has a dividend yield of 4.1%. Hellenic Telecom Organization pays out 53.1% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 14.0% and pay out 33.0% of their earnings in the form of a dividend. Hellenic Telecom Organization lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Hellenic Telecom Organization has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Hellenic Telecom Organization’s peers have a beta of -4.77, meaning that their average share price is 577% less volatile than the S&P 500.

Summary

Hellenic Telecom Organization peers beat Hellenic Telecom Organization on 10 of the 15 factors compared.

Hellenic Telecom Organization Company Profile

Hellenic Telecommunications Organization S.A. provides telecommunications and related services to businesses and individuals primarily in Greece and Romania. It operates through OTE, COSMOTE Group, and Telekom Romania Mobile segments. The company offers fixed-line, Internet access, ICT, and TV production services; and international carrier services. It also provides mobile and satellite telecommunication, electronic money, e-commerce, financing, consultancy and security, real estate, insurance brokerage, training, wholesale telephony, retail, marketing, overdue accounts management, wholesale broadband, and infrastructure services. Hellenic Telecommunications Organization S.A. was incorporated in 1949 and is based in Athens, Greece. Hellenic Telecommunications Organization S.A. operates as a subsidiary of Deutsche Telekom AG.