Critical Survey: Telefónica (NYSE:TEF) versus Powerstorm (OTCMKTS:PSTO)

Telefónica (NYSE:TEF) and Powerstorm (OTCMKTS:PSTO) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Telefónica and Powerstorm”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telefónica	$40.57 billion	0.56	-$965.41 million	($0.26)	-15.54
Powerstorm	N/A	N/A	N/A	N/A	N/A

Powerstorm has lower revenue, but higher earnings than Telefónica.

Volatility and Risk

Telefónica has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Powerstorm has a beta of -0.72, indicating that its stock price is 172% less volatile than the S&P 500.

Profitability

This table compares Telefónica and Powerstorm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telefónica	-2.84%	10.10%	2.54%
Powerstorm	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Telefónica and Powerstorm, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telefónica	1	4	0	0	1.80
Powerstorm	0	0	0	0	0.00

Insider & Institutional Ownership

1.1% of Telefónica shares are owned by institutional investors. 0.0% of Telefónica shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Telefónica beats Powerstorm on 7 of the 8 factors compared between the two stocks.

About Telefónica

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 Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.