Analyzing RigNet (NASDAQ:RNET) and Telecom Italia (NASDAQ:TIIAY)

RigNet (NASDAQ:RNET) and Telecom Italia (OTCMKTS:TIIAY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Risk and Volatility

RigNet has a beta of 1.79, meaning that its share price is 79% 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

85.3% of RigNet shares are held by institutional investors. Comparatively, 0.9% of Telecom Italia shares are held by institutional investors. 2.4% of RigNet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
RigNet -29.07% -34.33% -8.58%
Telecom Italia N/A N/A N/A

Earnings and Valuation

This table compares RigNet and Telecom Italia’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RigNet $238.85 million 0.58 -$62.45 million N/A N/A
Telecom Italia $22.77 billion 0.55 -$1.67 billion ($0.71) -8.32

RigNet has higher earnings, but lower revenue than Telecom Italia.

Analyst Ratings

This is a summary of recent recommendations and price targets for RigNet and Telecom Italia, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RigNet 0 0 1 0 3.00
Telecom Italia 0 0 0 0 N/A

RigNet currently has a consensus target price of $20.00, suggesting a potential upside of 186.12%. Given RigNet’s higher probable upside, equities research analysts plainly believe RigNet is more favorable than Telecom Italia.

Summary

RigNet beats Telecom Italia on 7 of the 11 factors compared between the two stocks.

About RigNet

RigNet, Inc., a technology company, provides customized communications services, applications, and cybersecurity solutions in the United States and internationally. The company operates through three segments: Managed Services, Applications and Internet-of-Things (Apps & IoT), and Systems Integration. The Managed Services segment provides remote communication, telephony, and technology services for offshore and onshore drilling rigs and production facilities, support vessels, and other remote sites. The Applications and Internet-of-Things segment offers applications over-the-top of the network layer, including Software as a Service offerings, such as cyber security; applications for safety and workforce productivity; a real-time machine learning and AI data platform; and other value-added solutions. The Systems Integration segment engages in the design, consulting, engineering, project management, procurement, testing, installation, commissioning, and maintenance of telecommunications systems. RigNet, Inc. was founded in 2000 and is headquartered in Houston, Texas.

About Telecom Italia

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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