TELUS Corporation (TU) and Its Rivals Critical Comparison

TELUS Corporation (NYSE: TU) is one of 47 publicly-traded companies in the “Integrated Telecommunications Services” industry, but how does it compare to its peers? We will compare TELUS Corporation to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, institutional ownership and profitability.

Profitability

This table compares TELUS Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TELUS Corporation 9.55% 18.75% 5.44%
TELUS Corporation Competitors 0.55% -0.34% 1.45%

Institutional & Insider Ownership

51.1% of TELUS Corporation shares are owned by institutional investors. Comparatively, 56.1% of shares of all “Integrated Telecommunications Services” companies are owned by institutional investors. 4.4% of shares of all “Integrated Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TELUS Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TELUS Corporation 0 0 5 0 3.00
TELUS Corporation Competitors 611 1674 1934 74 2.34

TELUS Corporation currently has a consensus price target of $45.00, suggesting a potential upside of 23.80%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 31.65%. Given TELUS Corporation’s peers higher possible upside, analysts clearly believe TELUS Corporation has less favorable growth aspects than its peers.

Risk and Volatility

TELUS Corporation has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, TELUS Corporation’s peers have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares TELUS Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TELUS Corporation $10.22 billion $3.23 billion 23.01
TELUS Corporation Competitors $12.65 billion $4.22 billion 1.08

TELUS Corporation’s peers have higher revenue and earnings than TELUS Corporation. TELUS Corporation 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.

Dividends

TELUS Corporation pays an annual dividend of $1.58 per share and has a dividend yield of 4.3%. TELUS Corporation pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 5.1% and pay out 841.4% of their earnings in the form of a dividend.

Summary

TELUS Corporation peers beat TELUS Corporation on 8 of the 15 factors compared.

TELUS Corporation Company Profile

TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.

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