Neustar (NYSE: NSR) and Telecom Argentina Stet - France Telecom (NYSE:TEO) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitabiliy, institutional ownership, dividends and valuation.
Profitability
This table compares Neustar and Telecom Argentina Stet - France Telecom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neustar | 15.03% | 32.93% | 13.97% |
| Telecom Argentina Stet - France Telecom | 8.92% | 25.23% | 10.79% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Neustar and Telecom Argentina Stet - France Telecom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neustar | 0 | 3 | 0 | 0 | 2.00 |
| Telecom Argentina Stet - France Telecom | 0 | 1 | 3 | 0 | 2.75 |
Neustar presently has a consensus target price of $29.50, indicating a potential downside of 11.41%. Telecom Argentina Stet - France Telecom has a consensus target price of $26.50, indicating a potential downside of 1.82%. Given Telecom Argentina Stet - France Telecom’s stronger consensus rating and higher probable upside, analysts plainly believe Telecom Argentina Stet - France Telecom is more favorable than Neustar.
Insider and Institutional Ownership
90.6% of Neustar shares are owned by institutional investors. Comparatively, 5.8% of Telecom Argentina Stet - France Telecom shares are owned by institutional investors. 2.9% of Neustar shares are owned by insiders. Comparatively, 1.0% of Telecom Argentina Stet - France Telecom shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Telecom Argentina Stet - France Telecom pays an annual dividend of $0.45 per share and has a dividend yield of 1.7%. Neustar does not pay a dividend. Telecom Argentina Stet - France Telecom pays out 26.6% of its earnings in the form of a dividend.
Volatility & Risk
Neustar has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Telecom Argentina Stet - France Telecom has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.
Earnings & Valuation
This table compares Neustar and Telecom Argentina Stet - France Telecom’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Neustar | $1.22 billion | 1.52 | $473.09 million | $3.27 | 10.18 |
| Telecom Argentina Stet - France Telecom | $3.28 billion | 1.59 | $855.80 million | $1.69 | 15.97 |
Telecom Argentina Stet - France Telecom has higher revenue and earnings than Neustar. Neustar is trading at a lower price-to-earnings ratio than Telecom Argentina Stet - France Telecom, indicating that it is currently the more affordable of the two stocks.
Summary
Telecom Argentina Stet - France Telecom beats Neustar on 9 of the 16 factors compared between the two stocks.
About Neustar
NeuStar, Inc. is a global information services provider. The Company’s cloud-based platforms and differentiated data sets offer informative, real-time analytics, which enable clients to make actionable, data-driven decisions. It provides chief marketing officers a suite of services to plan their media spends, identify and locate desired customers, invest in marketing campaigns, deliver relevant offers and measure the performance of these activities. Security professionals use the Company’s solutions to maximize Web performance and protect against malicious attacks. It enables the exchange of essential operating information across multiple carriers to provision and manage services, assisting clients with order processing and routing of customer inquiries. The Company’s services include marketing services, security services, data services and number portability administration center (NPAC) services.
About Telecom Argentina Stet - France Telecom
Telecom Argentina S.A. provides fixed-line telecommunications services in Argentina, and also provides other telephone-related services, such as international long-distance service, data transmission, information technology solutions outsourcing and Internet services. The Company’s segments include Fixed Telecommunications Services (Fixed Services), Personal Mobile Telecommunications Services (Personal Mobile Services) and Nucleo Mobile Telecommunications Services (Nucleo Mobile Services). The Company, through its subsidiaries, also provides mobile telecommunications services and international wholesale services. The Fixed services segment consists of basic telephone services, interconnection services, data transmission and Internet services, information and communication technology services, and other telephone services. The Company, through its subsidiaries, such as Telecom Personal S.A. and Nucleo S.A., provides mobile services in Argentina and Paraguay, respectively.
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