Critical Review: Telenor ASA (OTCMKTS:TELNY) versus Axtel (OTCMKTS:AXTLF)

Telenor ASA (OTCMKTS:TELNY) and Axtel (OTCMKTS:AXTLF) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for Telenor ASA and Axtel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telenor ASA	0	2	0	1	2.67
Axtel	0	0	0	0	0.00

Given Axtel’s higher possible upside, analysts clearly believe Axtel is more favorable than Telenor ASA.

Volatility & Risk

Telenor ASA has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Axtel has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500.

Profitability

This table compares Telenor ASA and Axtel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telenor ASA	24.17%	16.15%	5.56%
Axtel	N/A	N/A	N/A

Earnings and Valuation

This table compares Telenor ASA and Axtel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telenor ASA	$7.44 billion	2.46	$1.78 billion	$1.30	10.26
Axtel	N/A	N/A	N/A	N/A	N/A

Telenor ASA has higher revenue and earnings than Axtel.

Summary

Telenor ASA beats Axtel on 7 of the 8 factors compared between the two stocks.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.

About Axtel

AXTEL SAB de CV engages in the provision of public telecommunication services. It operates through the following segments: Business Operation and Government. The Business Operation segment offers communication services and value-added services, such as information, data and internet technologies for both local and international businesses. The Government segment provides services through the company’s network and infrastructure for the federal, state and municipal governments. The company was founded on July 22, 1994 and is headquartered in San Pedro Garza Garcia, Mexico.