Contrasting Telecom Italia (OTCMKTS:TIIAY) & RigNet (OTCMKTS:RNET)

Telecom Italia (OTCMKTS:TIIAY) and RigNet (NASDAQ:RNET) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Risk & Volatility

Telecom Italia has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, RigNet has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Earnings & Valuation

This table compares Telecom Italia and RigNet’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telecom Italia $22.77 billion 0.53 -$1.67 billion ($0.71) -8.01
RigNet $238.85 million 0.73 -$62.45 million N/A N/A

RigNet has lower revenue, but higher earnings than Telecom Italia.

Insider and Institutional Ownership

0.9% of Telecom Italia shares are owned by institutional investors. Comparatively, 85.3% of RigNet shares are owned by institutional investors. 2.4% of RigNet 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.

Profitability

This table compares Telecom Italia and RigNet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telecom Italia N/A N/A N/A
RigNet -29.07% -34.33% -8.58%

Analyst Recommendations

This is a summary of recent recommendations for Telecom Italia and RigNet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telecom Italia 0 0 0 0 N/A
RigNet 0 0 1 0 3.00

RigNet has a consensus price target of $20.00, indicating a potential upside of 129.89%. Given RigNet’s higher probable upside, analysts clearly believe RigNet is more favorable than Telecom Italia.

Summary

RigNet beats Telecom Italia on 7 of the 11 factors compared between the two stocks.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, South America, and the Mediterranean Basin. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed and mobile telecommunications operators; provision of infrastructure for housing radio transmission equipment of mobile telephone networks; and development, engineering, building, and operation of network infrastructures, information technology (IT), real estate properties, and plant engineering. In addition, it engages in customer care, operating credit support, loyalty, and retention activities; and staff functions and other support activities. Further, the company offers office products and services for IT sector. The company was founded in 1908 and is headquartered in Rome, Italy.

About RigNet

RigNet, Inc., a technology company, provides customized communications services, applications, and cybersecurity solutions in the United States and internationally. The company operates through three segments: Managed Services, Applications and Internet-of-Things (Apps & IoT), and Systems Integration. The Managed Services segment provides remote communication, telephony, and technology services for offshore and onshore drilling rigs and production facilities, support vessels, and other remote sites. The Applications and Internet-of-Things segment offers applications over-the-top of the network layer, including Software as a Service offerings, such as cyber security; applications for safety and workforce productivity; a real-time machine learning and AI data platform; and other value-added solutions. The Systems Integration segment engages in the design, consulting, engineering, project management, procurement, testing, installation, commissioning, and maintenance of telecommunications systems. RigNet, Inc. was founded in 2000 and is headquartered in Houston, Texas.

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