Critical Contrast: Tele2 AB (publ) (OTCMKTS:TLTZY) vs. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK)

Tele2 AB (publ) (OTCMKTS:TLTZY) and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Tele2 AB (publ) and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tele2 AB (publ)	$2.80 billion	3.06	$366.10 million	$0.26	24.12
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk	$150,197.00 billion	0.00	$1.59 billion	$1.44	10.31

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk has higher revenue and earnings than Tele2 AB (publ). Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk is trading at a lower price-to-earnings ratio than Tele2 AB (publ), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tele2 AB (publ) and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tele2 AB (publ)	13.05%	17.50%	5.78%
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk	15.12%	14.86%	8.07%

Dividends

Tele2 AB (publ) pays an annual dividend of $0.16 per share and has a dividend yield of 2.6%. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk pays an annual dividend of $0.83 per share and has a dividend yield of 5.6%. Tele2 AB (publ) pays out 61.5% of its earnings in the form of a dividend. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk pays out 57.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for Tele2 AB (publ) and Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tele2 AB (publ)	0	0	0	1	4.00
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk	0	0	0	0	0.00

Volatility & Risk

Tele2 AB (publ) has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Summary

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk beats Tele2 AB (publ) on 8 of the 13 factors compared between the two stocks.

About Tele2 AB (publ)

Tele2 AB (publ) provides fixed and mobile connectivity, handset related data services, and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. The company also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, it offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. The company was incorporated in 1990 and is headquartered in Kista, Sweden.

About Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.