Kick Off: Telstra Corporation Ltd v Sydney Airport Holdings Ltd

An airport takes on a telco in the battle for glory in Brazil.

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Welcome to this ASX World Cup group game between two stock exchange titans, Sydney Airport Holdings Ltd  (ASX: SYD) and Telstra Corporation Ltd (ASX: TLS). Two well supported teams thanks to their reputation for defensive earnings streams.

Pre-match commentary and stats

Sydney Airport as a monopoly type business and key piece of infrastructure is set-up nicely to perform strongly for the fans. Talk of a rival, Western Sydney Wanderers type team setting up at Badgerys Creek appears no problem, as Sydney Airport has first right of refusal over its construction and control.

Telstra meanwhile is the dominant player in the telecommunications market, it possesses a strong team with new technology in attack, mobiles in midfield and cash payouts in defence.   

  Sydney Airport Telstra
 Code ASX:SYD ASX:TLS
Recent Price $4.36 $5.17
Market Capitalisation $9.6 billion $64.3 billion
Dividend Yield / Franking 5.3% | 0% 5.5% | 100%
Projected P/E ratio 2015 38.2 15.3
Price-Book ratio 2.62 5.1

Source: Thomson Consensus Estimates

The first half starts and both teams look to attack on the value ratio to score a quick goal. With Sydney Airport trading on a forward price-earnings of 38.2 compared to Telstra's 15.3 there's no doubt the winner here. Telstra shoots and scores!

The score is 1-0 to Telstra going into the second half.

Sydney Airport will need to push forward now in search of an equaliser and with the forecast for international passenger growth over long-term horizons positive, the airport should benefit from the coming Asian Century. Telstra though also has its attack set on Asian growth, with team captain David Thodey highlighting it as a strategic priority. Telstra shoots with its Pan-Asian business strategy, but what a save by the airport's goalkeeper! As the custodian to Australia the airport has a tight defense and the game remains locked at 1-0.

Heading towards the business end of the game now and all eyes are on the prospective yields of these two, Telstra's winning here with 5.5% over the 5.3% offered by the Airport. Oh, some controversy now as the referee awards a penalty against the airport for not franking its dividends! That's a tough call but one many fans seem to support. Telstra's captain David Thodey steps up to take it, and having raised the latest payout to 14.5 cents per share with potential for more to come he blasts it into the top corner!

Final score is 2-0 to one of the tournament favourites Telstra. 

Motley Fool contributor Tom Richardson owns shares in Telstra and Sydney Airport. You can find him on Twitter @tommyr345

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