Financial Analysis: Cellcom Israel (CEL) versus Its Peers

Cellcom Israel (NYSE: CEL) is one of 36 public companies in the “Wireless Telecommunications Services” industry, but how does it compare to its competitors? We will compare Cellcom Israel to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Volatility and Risk

Cellcom Israel has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, Cellcom Israel’s competitors have a beta of 0.78, indicating that their average share price is 22% less volatile than the S&P 500.

Institutional and Insider Ownership

5.6% of Cellcom Israel shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Cellcom Israel and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cellcom Israel 3.12% 8.94% 1.90%
Cellcom Israel Competitors -994.58% 4.47% -5.15%

Analyst Recommendations

This is a summary of current recommendations and price targets for Cellcom Israel and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 1 1 0 0 1.50
Cellcom Israel Competitors 511 1573 1750 56 2.35

As a group, “Wireless Telecommunications Services” companies have a potential upside of 17.18%. Given Cellcom Israel’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Cellcom Israel has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Cellcom Israel and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cellcom Israel $1.11 billion $210.25 million 29.69
Cellcom Israel Competitors $28.35 billion $8.31 billion 7.82

Cellcom Israel’s competitors have higher revenue and earnings than Cellcom Israel. Cellcom Israel is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Cellcom Israel competitors beat Cellcom Israel on 8 of the 13 factors compared.

Cellcom Israel Company Profile

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

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