PT Telekomunikasi Indonesia, Tbk (TLK) vs Telefonica Brasil S.A. (VIV)

PT Telekomunikasi Indonesia, Tbk and Telefonica Brasil S.A. are both Telecom Services companies. Telefonica Brasil S.A. is the larger, with a market value of $18.7B against $13.1B — 1.4× the size. PT Telekomunikasi Indonesia, Tbk trades at the lower P/E: 9.7× against 23.3×. PT Telekomunikasi Indonesia, Tbk grew revenue faster over the last twelve months: 35.1% against 16.4%. PT Telekomunikasi Indonesia, Tbk has the higher net margin (15.2% vs 10.6%) and the lower return on invested capital (0.00% vs 8.17%). Both pay a dividend; Telefonica Brasil S.A. yields more (5.77% vs 4.73%). Across the 23 metrics below, PT Telekomunikasi Indonesia, Tbk leads on 14 and Telefonica Brasil S.A. on 9.

Valuation

Metric TLK VIV Telecom Services median
P/E 9.74 23.26 13.27
P/S 0.98 3.17 0.95
P/B 1.63 2.85 1.47
Price to free cash flow 3.39 16.61 8.72
EV/EBITDA 4.00 7.99 6.85
EV/Sales 0.95 3.36 1.87
Earnings yield 10.27% 4.30% 1.66%
Free cash flow yield 29.50% 6.02% 5.53%

Profitability

Metric TLK VIV Telecom Services median
Gross margin 100.00% 45.03% 51.26%
Operating margin 28.14% 17.00% 7.62%
Net margin 15.16% 10.59% 4.22%
Free cash flow margin 0.00% 19.09% 4.73%
Return on equity 0.00% 9.89% 5.80%
Return on assets 0.00% 5.17% 0.00%
Return on invested capital 0.00% 8.17% 3.41%

Growth

Metric TLK VIV Telecom Services median
Revenue growth (TTM) 35.05% 16.40% 3.31%
EPS growth (last fiscal year) (28.00%) (45.52%) —
Revenue growth, 5-year CAGR (1.96%) 4.99% 1.50%
Net income growth, 5-year CAGR (6.88%) 3.60% 0.00%

Health

Metric TLK VIV Telecom Services median
Debt to equity 0.36 0.30 0.63
Current ratio 0.79 0.95 1.13
Net debt to EBITDA 0.24 0.53 1.86

Dividend

Metric TLK VIV Telecom Services median
Dividend yield 4.73% 5.77% 4.06%
Payout ratio 0.84 0.83 0.00

Size

Metric TLK VIV Telecom Services median
Market cap 13.11b 18.68b 3.06b

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