Telecommunications

Singapore Telecom (OTCMKTS: SGAPY) and BCE (NYSE: BCE) Analysis


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

Profitability

This table compares the net margins, return on equity and return on assets of Singapore Telecommunications and BCE.

Net margins Return on equity return on assets
Singapore Telecommunications N / A N / A N / A
ECB 12.85% 15.75% 4.59%

Analyst Recommendations

This is a summary of the current ratings and target prices for Singapore Telecommunications and BCE, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Singapore Telecommunications 0 0 1 0 3.00
ECB 0 seven 2 0 2.22

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

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Singapore Telecommunications and BCE.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Singapore Telecommunications $11.38 billion 2.68 $1.45 billion N / A N / A
ECB $18.71 billion 2.60 $2.27 billion $2.59 20.58

BCE has higher revenues and profits than Singapore Telecommunications.

Insider and Institutional Ownership

0.0% of Singapore Telecommunications shares are held by institutional investors. By comparison, 44.8% of BCE’s shares are held by institutional investors. 0.2% of BCE shares are held by insiders of the company. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock is poised for long-term growth.

Volatility and risk

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

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 110.8% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. BCE has increased its dividend for 1 consecutive years. BCE is clearly the better dividend-paying stock, given its higher yield and longer history of dividend growth.

Summary

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

About Singapore Telecom (Get an assessment)

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunications services to consumers and small businesses in Singapore, Australia, the United States, Europe and around the world. It operates through three segments: Group Consumer, Group Enterprise and Group Digital Life. The Company is engaged in the distribution business, including mobile, pay-TV, fixed-broadband and voice services, as well as the sale of equipment; mobile financial services, games and digital content; and digital marketing, analytics and intelligence companies. It also offers ICT solutions, such as fixed voice and data, cloud computing, cybersecurity, IT, professional consulting and managed services to enterprise customers; cell phones, accessories, watches, watch straps, cables, adapters, media hubs, cameras, gimbals, cases, chargers, drones, headphones, headsets, microphones, keyboards, laptops, screen protectors, speakers, tablets , trackers and wearables, as well as mouse, connectivity, gaming, smart home, Wi-Fi mesh, power solution and storage solution products; postpaid and prepaid plans; and complementary postpaid, roaming, 5G and AR/VR entertainment services. Additionally, the company offers broadband plans and add-ons, Wi-Fi 6, Microsoft 365 subscription, TV packages and guides, TV Go, video on demand, installment plans, auto and home contents insurance, well- be, HungryGoWhere, newsstand, music and phone services; DVR decoders; lifestyle products; and Singtel Surf School which offers cyber fun, safety and education services, as well as technical workshops. Additionally, it offers cloud, data center, and software as a service; Internet of things; unified voice 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 an assessment)

BCE Inc. is 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, as well as 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 purchases and sells local telephone, long distance, data and other services from or to resellers and other carriers. The Bell Media segment provides conventional television, specialty television, pay television, streaming, digital media, broadcast services and outdoor advertising (OOH). It owns and operates 35 conventional television stations; 27 specialty channels and four pay TV services; four direct-to-consumer streaming services; 109 approved radios; 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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