Orange (ORANY) vs Telefonica SA (TELFY)

Orange and Telefonica SA are both Telecom Services companies. Orange is the larger, with a market value of $29.8B against $21.5B — 1.4× the size. Telefonica SA has negative trailing earnings, so its P/E is not meaningful; Orange trades at 6.7×. Orange grew revenue faster over the last twelve months: −5.31% against −6.91%. Orange has the higher net margin (6.83% vs −10.6%) and the lower return on invested capital (0.00% vs 1.78%). Both pay a dividend; Telefonica SA yields more (8.46% vs 6.81%). Across the 19 metrics below, Orange leads on 11 and Telefonica SA on 8.

Valuation

Metric ORANY TELFY Telecom Services median
P/E 6.69 n/m 13.27
P/S n/m 0.55 0.95
P/B n/m 1.02 1.47
Price to free cash flow n/m 12.19 8.72
EV/EBITDA 1.51 35.36 6.85
EV/Sales 0.45 1.34 1.87
Earnings yield 14.95% (18.86%) 1.66%
Free cash flow yield 0.00% 8.20% 5.53%

Profitability

Metric ORANY TELFY Telecom Services median
Gross margin 16.31% 66.84% 51.26%
Operating margin 0.00% 3.78% 7.62%
Net margin 6.83% (10.56%) 4.22%
Free cash flow margin 0.00% 4.54% 4.73%
Return on equity 0.00% (17.31%) 5.80%
Return on assets 0.00% (3.95%) 0.00%
Return on invested capital 0.00% 1.78% 3.41%

Growth

Metric ORANY TELFY Telecom Services median
Revenue growth (TTM) (5.31%) (6.91%) 3.31%
EPS growth (last fiscal year) (82.02%) (1,433.33%) —
Revenue growth, 5-year CAGR (1.09%) (4.19%) 1.50%
Net income growth, 5-year CAGR (35.63%) 0.00% 0.00%

Health

Metric ORANY TELFY Telecom Services median
Debt to equity 1.36 1.84 0.63
Current ratio 0.87 0.92 1.13
Net debt to EBITDA 1.92 20.40 1.86

Dividend

Metric ORANY TELFY Telecom Services median
Dividend yield 6.81% 8.46% 4.06%
Payout ratio 1.15 1.15 0.00

Size

Metric ORANY TELFY Telecom Services median
Market cap 29.75b 21.48b 3.06b

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