NOW beats DITO in a PE battle

Recently, DITO CME Holdings Corp. (DITO) and Now Corporation (NOW) are two companies that registered as among the most actively traded shares in the local bourse.  They even caused slowdowns in the platform of some online brokerages.  Both have connections to telecom players.

DITO CME Holdings Corp. (DITO) linked to 3rd Telco

DITO CME Holdings Corp. (DITO) is a holding company 45% owned by Dennison Holdings Corporation.  It has no direct affiliation or association with Dito Telecommunity Corporation, the country’s designated third telco.

DITO’s primary assets are the loans or advances to Undenna Corporation (Udenna) and to Chelsea Logistics and Infrastructure Holdings Corporation (Chelsea) in the amount of around 4 Billion Pesos.  Udenna and Chelsea control 35% and 25% respectively of the third telco, Dito Telecommunity Corporation.

The primary income of DITO is the interest income of its advances to Udenna and Chelsea.

Assets of DITO as of June 30, 2020 totals 4.2 Billion Pesos with an earnings per share of 0.0198 for the six-month period ending June 30, 2020.  Recent market capitalization of DITO is at around 17.25 Billion Pesos.

Now Corporation (NOW) linked to 4th Telco

Now Corporation (NOW) is a company engaged in the business of technology, media and telecommunication. As of March 31, 2020 its significant stockholders were Velarde, Inc. a Filipino corporation with 21.28% stake and Top Mega Enterprises Limited a corporation with Chinese nationality with a 20.39% stake.  But as of June 30, 2020 Velarde, Inc.’s shareholdings was whittled down to just 9.3189%.

Now Corporation’s revenue comes primarily from broadband service contracts.  It has a total revenue of 89 Million Pesos for the six-month period ending June 30, 2020 resulting in an earnings per share of 0.0046.  Assets of NOW as of June 30, 2020 totals 2.2 Billion Pesos. NOW counts as an asset its 19% equity investment in NOW Telecom Company, Inc. (NOW Telecom) valued in its balance as of June 30, 2020 at 1.5 Billion Pesos. NOW Telecom has been touted by NOW as the fourth telecommunications player (fourth telco).

Recent market capitalization of NOW stood at 8.13 Billion.

PE battle

Price/earnings ratio of DITO stood at 243.48 (as of 10/09/20) while NOW’s price/earnings ratio stood at 611.54 (as of 10/0920). It looks like NOW beats DITO in a PE battle with a very wide margin. 

Disclaimer and Disclosure: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent view point. Accuretti Systems Inc. in the course of day to day trading may have own, or is considering buying or disposing, the shares of the companies mentioned in this commentary.

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