Contrasting TIM (NYSE:TIMB) and PCCW (OTCMKTS:PCWLF)

TIM (NYSE:TIMB) and PCCW (OTCMKTS:PCWLF) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations for TIM and PCCW, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TIM	0	3	1	0	2.25
PCCW	0	0	0	0	0.00

TIM currently has a consensus target price of $15.87, indicating a potential upside of 15.10%. Given TIM’s stronger consensus rating and higher probable upside, research analysts clearly believe TIM is more favorable than PCCW.

Profitability

This table compares TIM and PCCW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TIM	12.24%	11.91%	5.59%
PCCW	N/A	N/A	N/A

Valuation and Earnings

This table compares TIM and PCCW”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TIM	$25.09 billion	0.27	$584.88 million	$1.18	11.68
PCCW	N/A	N/A	N/A	N/A	N/A

TIM has higher revenue and earnings than PCCW.

Volatility & Risk

TIM has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, PCCW has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Summary

TIM beats PCCW on 8 of the 8 factors compared between the two stocks.

About TIM

TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.

About PCCW

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company’s services include local telephony, local data and broadband, mobile, enterprise solutions, international telecommunications, and satellite-based and network-based telecommunications services; outsourcing, consulting, and contact center services; and technical consulting and engineering services. It also provides free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; sells mobile handsets and accessories; distributes media content; and mobile video on demand and advertising services through OTT platform. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; provision of data services; software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; operates customer loyalty program and online merchandise sales; and content production, talent management, and entertainment business. Additionally, the company offers e-commerce, travel, insurance, big data analytics, fintech, and health-tech services. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.