BCE (BCE) vs. Its Competitors Head-To-Head Analysis

BCE (NYSE: BCE) is one of 47 public companies in the “Integrated Telecommunications Services” industry, but how does it contrast to its peers? We will compare BCE to related companies based on the strength of its analyst recommendations, earnings, profitability, dividends, valuation, risk and institutional ownership.

Earnings and Valuation

This table compares BCE and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
BCE $18.26 billion $6.84 billion 19.23
BCE Competitors $12.75 billion $4.25 billion 3.93

BCE has higher revenue and earnings than its peers. BCE is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares BCE and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BCE 12.85% 21.08% 5.78%
BCE Competitors 0.51% -0.18% 1.52%

Insider & Institutional Ownership

42.7% of BCE shares are held by institutional investors. Comparatively, 56.0% of shares of all “Integrated Telecommunications Services” companies are held by institutional investors. 0.2% of BCE shares are held by insiders. Comparatively, 4.4% of shares of all “Integrated Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

BCE pays an annual dividend of $2.30 per share and has a dividend yield of 4.9%. BCE pays out 94.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Telecommunications Services” companies pay a dividend yield of 5.0% and pay out 829.0% of their earnings in the form of a dividend.

Volatility and Risk

BCE has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, BCE’s peers have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for BCE and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BCE 0 5 4 0 2.44
BCE Competitors 614 1689 1944 74 2.34

BCE currently has a consensus target price of $57.80, suggesting a potential upside of 23.19%. As a group, “Integrated Telecommunications Services” companies have a potential upside of 35.50%. Given BCE’s peers higher probable upside, analysts plainly believe BCE has less favorable growth aspects than its peers.

Summary

BCE beats its peers on 8 of the 15 factors compared.

About BCE

BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.

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