Charter Communications, Inc. (CHTR) vs Telefonica SA (TELFY)

Charter Communications, Inc. and Telefonica SA are both Telecom Services companies. Charter Communications, Inc. and Telefonica SA are of similar size ($21.5B and $20.6B). Telefonica SA has negative trailing earnings, so its P/E is not meaningful; Charter Communications, Inc. trades at 2.9×. Charter Communications, Inc. grew revenue faster over the last twelve months: −1.50% against −6.91%. Charter Communications, Inc. has the higher net margin (9.05% vs −10.6%) and the higher return on invested capital (6.77% vs 1.78%). Across the 21 metrics below, Charter Communications, Inc. leads on 17 and Telefonica SA on 4.

Valuation

Metric CHTR TELFY Telecom Services median
P/E 2.90 n/m 13.27
P/S 0.25 0.55 0.95
P/B 0.62 1.02 1.47
Price to free cash flow 3.11 12.19 8.72
EV/EBITDA 5.07 35.36 6.85
EV/Sales 2.00 1.34 1.87
Earnings yield 34.54% (18.86%) 1.66%
Free cash flow yield 32.13% 8.20% 5.53%

Profitability

Metric CHTR TELFY Telecom Services median
Gross margin 39.90% 66.84% 51.26%
Operating margin 23.28% 3.78% 7.62%
Net margin 9.05% (10.56%) 4.22%
Free cash flow margin 8.01% 4.54% 4.73%
Return on equity 23.30% (17.31%) 5.80%
Return on assets 3.21% (3.95%) 0.00%
Return on invested capital 6.77% 1.78% 3.41%

Growth

Metric CHTR TELFY Telecom Services median
Revenue growth (TTM) (1.50%) (6.91%) 3.31%
EPS growth (last fiscal year) 3.55% (1,433.33%) —
Revenue growth, 5-year CAGR 2.63% (4.19%) 1.50%
Net income growth, 5-year CAGR 9.13% 0.00% 0.00%

Health

Metric CHTR TELFY Telecom Services median
Debt to equity 4.36 1.84 0.63
Current ratio 0.36 0.92 1.13
Net debt to EBITDA 4.43 20.40 1.86

Dividend

Metric CHTR TELFY Telecom Services median
Dividend yield — 8.46% 4.06%
Payout ratio 0.00 1.15 0.00

Size

Metric CHTR TELFY Telecom Services median
Market cap 20.58b 21.48b 3.06b

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