Financial Review: Boingo Wireless (NASDAQ:WIFI) and Telecom Italia (NASDAQ:TIIAY)

Boingo Wireless (NASDAQ:WIFI) and Telecom Italia (OTCMKTS:TIIAY) 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, risk, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Boingo Wireless and Telecom Italia, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boingo Wireless 0 0 8 0 3.00
Telecom Italia 0 0 0 0 N/A

Boingo Wireless currently has a consensus price target of $30.29, suggesting a potential upside of 207.78%. Given Boingo Wireless’ higher probable upside, analysts clearly believe Boingo Wireless is more favorable than Telecom Italia.

Valuation & Earnings

This table compares Boingo Wireless and Telecom Italia’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boingo Wireless $250.82 million 1.73 -$1.22 million ($0.03) -328.00
Telecom Italia $22.77 billion 0.51 -$1.67 billion ($0.71) -7.74

Boingo Wireless has higher earnings, but lower revenue than Telecom Italia. Boingo Wireless is trading at a lower price-to-earnings ratio than Telecom Italia, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Boingo Wireless has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

0.9% of Telecom Italia shares are held by institutional investors. 4.5% of Boingo Wireless shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Boingo Wireless and Telecom Italia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boingo Wireless -1.88% -4.67% -0.90%
Telecom Italia N/A N/A N/A

Summary

Boingo Wireless beats Telecom Italia on 7 of the 13 factors compared between the two stocks.

Boingo Wireless Company Profile

Boingo Wireless, Inc., together with its subsidiaries, provides wireless connectivity solutions for smartphones, tablets, laptops, wearables, and other wireless-enabled consumer devices worldwide. The company offers distributed antenna systems and small cell networks at managed and operated locations; high-speed Wi-Fi services for residential consumers on military bases and at multifamily properties; and wholesale Wi-Fi services to network operators, device manufacturers, technology companies, enterprise software and services companies, venue operators, and financial services companies, as well as retail Internet access services. It serves largest carriers, telecommunications service providers, global consumer brands, and property owners, as well as troops stationed at military bases and Internet savvy consumers. The company was formerly known as Project Mammoth, Inc. and changed its name to Boingo Wireless, Inc. in October 2001. Boingo Wireless, Inc. was founded in 2001 and is headquartered in Los Angeles, California.

Telecom Italia Company Profile

Telecom Italia S.p.A., together with its subsidiaries, provides fixed and mobile telecommunications services in Europe, South America, and the Mediterranean Basin. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed and mobile telecommunications operators; provision of infrastructure for housing radio transmission equipment of mobile telephone networks; and development, engineering, building, and operation of network infrastructures, information technology (IT), real estate properties, and plant engineering. In addition, it engages in customer care, operating credit support, loyalty, and retention activities; and staff functions and other support activities. Further, the company offers office products and services for IT sector. The company was founded in 1908 and is headquartered in Rome, Italy.

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