Contrasting Swisscom (OTCMKTS:SCMWY) & Maxcom Telecomunic (OTCMKTS:MXMTY)

Swisscom (OTCMKTS:SCMWY) and Maxcom Telecomunic (OTCMKTS:MXMTY) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Swisscom and Maxcom Telecomunic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Swisscom $11.98 billion 2.15 $1.56 billion $3.01 16.52
Maxcom Telecomunic $68.52 million 0.24 -$14.60 million N/A N/A

Swisscom has higher revenue and earnings than Maxcom Telecomunic.

Dividends

Swisscom pays an annual dividend of $1.84 per share and has a dividend yield of 3.7%. Maxcom Telecomunic does not pay a dividend. Swisscom pays out 61.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.1% of Swisscom shares are held by institutional investors. 1.0% of Swisscom shares are held by 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 current ratings and recommmendations for Swisscom and Maxcom Telecomunic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Swisscom 1 2 0 0 1.67
Maxcom Telecomunic 0 0 0 0 N/A

Volatility and Risk

Swisscom has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Maxcom Telecomunic has a beta of -1.74, meaning that its stock price is 274% less volatile than the S&P 500.

Profitability

This table compares Swisscom and Maxcom Telecomunic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Swisscom 13.03% 18.74% 6.66%
Maxcom Telecomunic -24.46% -38.45% -9.85%

Summary

Swisscom beats Maxcom Telecomunic on 10 of the 11 factors compared between the two stocks.

About Swisscom

Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. The company operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. It offers broadband, TV, fixed-network, and mobile phone subscription services, as well as national and international telephone, and data traffic services for residential customers, and small and medium-sized enterprises. The company also provides cloud, outsourcing, workplace, UCC, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, it plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband services, such as voice, data, and TV services, as well as video-on-demand for residential and corporate customers. Further, the company provides mobile phone services; IT and network services, and customized solutions; and online and telephone directories, as well as sells merchandise products. Additionally, it offers collection services for radio and TV license fees; and cross-platform retail media and security communication services, as well as constructs and maintains wired and wireless networks. Swisscom AG was founded in 1998 and is headquartered in Bern, Switzerland.

About Maxcom Telecomunic

Maxcom Telecomunicaciones S.A.B. de C.V. provides telecommunication services in Mexico. Its solutions include dedicated Internet; L2L, a service through a point-to-point circuit to create private networks by interconnecting two client addressing within the same local area; MPLS B-TIC service that allows the integration of IP traffic, including voice, data, or video in the same connection; 01800, a long distance service; and SIP TRUNKS, a voice over IP solution. The company serves various sectors in hospitality and health, finance, call center, education, government, retail, manufacture, and building, as well as other companies. Maxcom Telecomunicaciones S.A.B. de C.V. was founded in 1996 and is based in Mexico City, Mexico.

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