Reviewing Deutsche Telekom (OTCMKTS:DTEGY) and B Communications (OTCMKTS:BCOMF)
by Sarita Garza · The Markets DailyB Communications (OTCMKTS:BCOMF – Get Free Report) and Deutsche Telekom (OTCMKTS:DTEGY – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Earnings and Valuation
This table compares B Communications and Deutsche Telekom”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| B Communications | $2.40 billion | 0.17 | $29.18 million | $0.75 | 5.33 |
| Deutsche Telekom | $134.70 billion | 1.39 | $10.87 billion | $2.21 | 17.23 |
Deutsche Telekom has higher revenue and earnings than B Communications. B Communications is trading at a lower price-to-earnings ratio than Deutsche Telekom, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
B Communications has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for B Communications and Deutsche Telekom, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| B Communications | 0 | 0 | 0 | 0 | 0.00 |
| Deutsche Telekom | 1 | 0 | 2 | 0 | 2.33 |
Profitability
This table compares B Communications and Deutsche Telekom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| B Communications | 3.16% | 17.53% | 3.76% |
| Deutsche Telekom | 8.03% | 10.53% | 3.37% |
Summary
Deutsche Telekom beats B Communications on 8 of the 11 factors compared between the two stocks.
About B Communications
B Communications Ltd., through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel. It operates through Interior Landline Communication, Cellular Communication, Bezeq International Services, and Multi-Channel TV segments. The company offers landline interior communications, including telephony, internet services and infrastructure, transmission and data communication, and wholesale services; and cellular radio-telephone services. It is also involved in the installation, operation, and maintenance of equipment and systems in the field of cellular communications; distribution of television and radio broadcasts; and marketing of equipment. In addition, the company provides international communication, network endpoint, and ICT solutions; and digital multi-channel TV broadcasting services to subscriptions over satellite and over the internet, as well as value-added services to subscribers. The company was formerly known as 012 Smile. Communications Ltd. and changed its name to B Communications Ltd. in March 2010. B Communications Ltd was incorporated in 1999 and is based in Tel Aviv-Yafo, Israel.
About Deutsche Telekom
Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.