Swisscom (SCMWY) and Rostelecom OJSC (ROSYY) Head-To-Head Survey

Rostelecom OJSC (OTCMKTS:ROSYY) and Swisscom (OTCMKTS:SCMWY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Risk and Volatility

Rostelecom OJSC has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Swisscom has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Profitability

This table compares Rostelecom OJSC and Swisscom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rostelecom OJSC N/A N/A N/A
Swisscom 13.03% 18.74% 6.66%

Institutional & Insider Ownership

0.0% of Rostelecom OJSC shares are owned by institutional investors. Comparatively, 0.1% of Swisscom shares are owned by institutional investors. 1.0% of Swisscom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Rostelecom OJSC pays an annual dividend of $0.57 per share and has a dividend yield of 8.2%. Swisscom pays an annual dividend of $1.83 per share and has a dividend yield of 4.0%. Swisscom pays out 60.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings for Rostelecom OJSC and Swisscom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rostelecom OJSC 0 0 0 0 N/A
Swisscom 1 2 0 0 1.67

Earnings and Valuation

This table compares Rostelecom OJSC and Swisscom’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rostelecom OJSC $5.24 billion 0.57 $234.21 million N/A N/A
Swisscom $11.98 billion 2.00 $1.56 billion $3.01 15.35

Swisscom has higher revenue and earnings than Rostelecom OJSC.

Summary

Swisscom beats Rostelecom OJSC on 9 of the 12 factors compared between the two stocks.

About Rostelecom OJSC

Public Joint Stock Company Rostelecom provides telecommunications services in Russia and Europe. The company offers communication services, such as local, intra-zone, long-distance domestic and international fixed-line telephone, and mobile services, as well as data transmission, Internet, Pay TV, VPN, data center, and radio communication services; and rents communication channels. It operates the intercity network and the international telecommunications gateways of Russia, which carry voice and data traffic that originates in owned, and other national and international operators' networks to national and international operators for termination. The company also operates government programs, including e-Government, unified communication service, and others, as well as offers solutions in the fields of cloud computing, healthcare, education, security, and housing and utility services. In addition, it manufactures communication equipment; and provides repair and maintenance, engineering design, recreational, IT consulting, and data storage services. Further, the company is involved in the provision of pension fund and equipment leasing activities. It serves approximately 13 million broadband subscribers; and approximately 10.1 million pay-TV subscribers, including 5.3 million IPTV subscribers. The company was founded in 1993 and is headquartered in Moscow, Russia.

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.

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