Financial Survey: Singapore Telecommunications (OTCMKTS:SGAPY) vs. BCE (NYSE:BCE)

Singapore Telecommunications (OTCMKTS:SGAPYGet Rating) and BCE (NYSE:BCEGet Rating) are both large-cap utilities companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Dividends

Singapore Telecommunications pays an annual dividend of $0.62 per share and has a dividend yield of 3.4%. BCE pays an annual dividend of $2.87 per share and has a dividend yield of 5.4%. BCE pays out 110.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BCE has increased its dividend for 1 consecutive years. BCE is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

0.0% of Singapore Telecommunications shares are owned by institutional investors. Comparatively, 44.8% of BCE shares are owned by institutional investors. 0.2% of BCE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Singapore Telecommunications and BCE, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Singapore Telecommunications 0 0 1 0 3.00
BCE 0 7 2 0 2.22

BCE has a consensus price target of $67.30, suggesting a potential upside of 26.29%. Given BCE’s higher probable upside, analysts clearly believe BCE is more favorable than Singapore Telecommunications.

Volatility & Risk

Singapore Telecommunications has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, BCE has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.

Profitability

This table compares Singapore Telecommunications and BCE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Singapore Telecommunications N/A N/A N/A
BCE 12.85% 15.75% 4.59%

Earnings & Valuation

This table compares Singapore Telecommunications and BCE’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Singapore Telecommunications $11.38 billion 2.68 $1.45 billion N/A N/A
BCE $18.71 billion 2.60 $2.27 billion $2.59 20.58

BCE has higher revenue and earnings than Singapore Telecommunications.

Summary

BCE beats Singapore Telecommunications on 11 of the 15 factors compared between the two stocks.

About Singapore Telecommunications (Get Rating)

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, the United States, Europe, and internationally. It operates through three segments: Group Consumer, Group Enterprise, and Group Digital Life. The company engages in the carriage business, including mobile, pay TV, fixed broadband, and voice services, as well as equipment sales; mobile financial, and gaming and digital content business; and digital marketing, and analytics and intelligence businesses. It also offers ICT solutions, such as fixed voice and data, cloud computing, cyber security, IT, professional consulting, and managed services to enterprise customers; mobile phones, accessories, watches, watch straps, cables, adapters, multimedia hubs, cameras, gimbals, cases, chargers, drones, earphones, headphones, microphones, keyboards, laptops, screen protectors, speakers, tablets, trackers, and wearables, as well as mouse, connectivity, gaming, smart home, WiFi mesh, power solution, and storage solution products; postpaid and prepaid plans; and postpaid add-on, roaming, 5G, and AR/VR entertainment services. In addition, the company provides broadband plans and add-on, Wi-Fi 6, Microsoft 365 subscription, TV packages and guides, TV Go, video on demand, instalment plans, car and home content insurance, wellness, HungryGoWhere, news stand, music, and telephony services; DVR set top boxes; lifestyle products; and Singtel Surf School that offers cyber fun, safety, and education services, as well as tech workshops. Further, it offers cloud, data center, and software-as-a service; Internet of Things; voice unified communications, cloud conferencing, international calling, and SIP trunking services; managed network and managed unified communications services; satellite services; and Singtel Liquid-X, a suite of cloud centric services. The company was incorporated in 1992 and is based in Singapore.

About BCE (Get Rating)

BCE Inc. operates as a telecommunications and media company in Canada. The company offers wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers. It operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment provides wireless voice and data communication products and services, and consumer electronics products. The Bell Wireline segment offers data, including internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communication services and products. This segment also buys and sells local telephone, long distance, data, and other services from or to resellers and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services, and out-of-home (OOH) advertising services. It owns and operates 35 conventional TV stations; 27 specialty channels and four Pay TV services; four direct-to-consumer streaming services; 109 licensed radio stations; and websites. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was incorporated in 1970 and is headquartered in Verdun, Canada.

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