Orange (OTC:ORANY) and TIM (NYSE:TIMB) Head-To-Head Review

Orange (OTC:ORANY) and TIM (NYSE:TIMB) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange	$47.75 billion	0.60	$2.64 billion	N/A	N/A
TIM	$4.77 billion	1.34	$568.34 million	$1.26	10.47

Orange has higher revenue and earnings than TIM.

Volatility and Risk

Orange has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, TIM has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Dividends

Orange pays an annual dividend of $0.42 per share and has a dividend yield of 3.9%. TIM pays an annual dividend of $0.69 per share and has a dividend yield of 5.2%. TIM pays out 54.8% of its earnings in the form of a dividend.

Insider & Institutional Ownership

12.2% of Orange shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orange	N/A	N/A	N/A
TIM	12.71%	11.73%	5.51%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Orange and TIM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange	0	1	0	0	2.00
TIM	0	3	1	0	2.25

TIM has a consensus target price of $17.57, suggesting a potential upside of 33.14%. Given TIM’s stronger consensus rating and higher possible upside, analysts clearly believe TIM is more favorable than Orange.

Summary

TIM beats Orange on 9 of the 13 factors compared between the two stocks.

About Orange

Orange S.A. provides fixed telephony, mobile telecommunication, data transmission, and other value-added services to individuals, professionals, and large companies in France and internationally. It offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as B2B fixed solutions and networks services, including voice and data services. The company also sells handsets, broadband equipment, connected devices, and accessories. In addition, it provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, the company offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors, brokers, and operators. It markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was incorporated in 1991 and is headquartered in Issy-les-Moulineaux, France.

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.